Stellantis Shares Slide After Turnaround Charges Linked to Strategic Shift

Shares of Stellantis (STLAM.MI) — the automaker behind Jeep, Fiat, and Peugeot — fell as much as 11% on Thursday after the company disclosed one-off charges tied to changes in regulation, strategy, and product plans. The announcement raised investor concerns over the broader auto sector, already strained by a worsening chip shortage.

The Franco-Italian group reported a 13% rise in third-quarter revenue, marking its first top-line growth in seven quarters, and reaffirmed its outlook for higher revenue, stronger cash flow, and low single-digit margins in the second half of the year.

However, Stellantis also flagged a one-time charge this half linked to strategic and product plan revisions — including a shift back toward hybrids after earlier prioritizing electrification, and costs for extended warranties on certain engines and underperforming models.

“We made necessary product decisions and major investments that give our customers back the freedom to choose,” CEO Antonio Filosa, who took over in June, told analysts.

Unclear guidance spooks investors

Despite CFO João Laranjo’s assurance that the charges would not materially affect the company’s outlook, Stellantis’ Milan-listed shares were down 9.3% by 1530 GMT.

Analysts at Jefferies described the company’s guidance as “vague,” flagging the new charges as a point of concern, while Citi noted that the full impact on free cash flow remained unclear.

Stellantis said its projections assume no major disruptions in the supply chain. However, the sector’s outlook has dimmed amid renewed semiconductor shortages tied to U.S.-China trade tensions, particularly affecting Dutch supplier Nexperia.

Filosa said the company had set up a “war room” to coordinate daily actions aimed at keeping production running smoothly and avoiding plant stoppages.

Following Thursday’s meeting between U.S. President Donald Trump and Chinese President Xi Jinping, tensions over semiconductor trade could ease, offering some relief to the industry.

Sales showing signs of recovery

Filosa, who succeeded Carlos Tavares after a period of weak U.S. sales and bloated inventories, is moving quickly to overhaul the automaker’s operations in its key North American market.

“We’ve reshaped our organizational structure to rebuild closer ties with customers, dealers, and suppliers,” Filosa said.

Earlier this month, Stellantis pledged $13 billion in U.S. investments to boost domestic production and offset tariffs. On Thursday, the company said it now expects a €1 billion ($1.2 billion) impact from current U.S. trade policy in 2025 — lower than its previous forecast.

Filosa, who plans to unveil his business plan in the second quarter of 2026, has already begun taking decisive steps, including booking several billion euros in pre-tax charges in the first half, reviving popular models like the Jeep Cherokee SUV, and shifting focus back to hybrid and gasoline vehicles.

For the July–September quarter, net revenue rose to €37.2 billion, driven by solid performance in North America and Europe — broadly in line with analysts’ forecasts compiled by Reuters and Stellantis’ preliminary sales data earlier this month.

(€1 = $1.167)