Vauxhall owner Stellantis posts huge €22billion loss after 'over-estimating' desire for electric cars

Net losses of €22.3billion (£19.4billion) were cited as being a result of "full year unusual charges", stemming from a strategic shift.

The Dutch-based manufacturing giant said this was because the brand had "put customer preferences and freedom-of-choice back at the heart of the Company's plans".

Stellantis announced that it would reset its strategic plan to offer drivers more choice when it comes to offering vehicles with different powertrains.

The manufacturer said the goal of the company was to generate growth and focus on customer demand, hence the changes to its powertrain offering.

It has slowly been returning diesel vehicles to its lineup across Europe, including vans, the Peugeot 308 and the DS N°4.

Antonio Filosa, CEO of Stellantis, said: "Our 2025 full-year results reflect the cost of over-estimating the pace of the energy transition and of the need to reset our business around our customers' freedom to choose from the full range of electric, hybrid and internal combustion technologies.

"In the second half of the year, we began to see initial, positive signs of progress with the early results of our drive to improve quality, strong execution of the launches of our new product wave and a return to top-line growth.

"In 2026, our focus will be on continuing to close the execution gaps of the past, adding further momentum to our return to profitable growth."

Stellantis had previously aimed to have 100 per cent of vehicles produced be electric by the end of the decade.

However, it will no longer pursue these targets, while also describing the European Union's previous targets as unachievable.

Brands under the Stellantis umbrella include Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, RAM and Vauxhall.

Stellantis acknowledged that it was broadening its offering around the world, including new internal combustion engine Jeep Cherokee and Dodge Charger Sixpack models in North America.

In the Enlarged Europe segment, Stellantis introduced the Citroen C5 Aircross EV, the Jeep Compass EV and the Fiat 500 Hybrid.

Analysts from Citi described the latest financial results as "an obvious low point" for Stellantis.

It added: "Whilst we could foresee some sort of sentiment recovery in Stellantis at some stage, we see better quality and less risk in other European (and US) OEMs."

Stellantis shipped 2.8 million units, an impressive increase of 277,000 vehicles compared to the same time last year.

The brand has also looked to focus on quality management, slashing the number of issues reported for vehicles in their first month of service, decreasing by over 50 per cent in North America.