Troubled automaker Stellantis, behind brands like Jeep and Fiat, announced Thursday a net loss of 22.3 billion euros ($26.3 billion) for last year, blaming a lack of demand for electric vehicles.

The group said earlier this month it would incur colossal charges to finance a shift back to combustion engines and away from producing EVs after sales fell well below expectations.

US auto giants Ford and General Motors also recently announced multi-billion-dollar write-downs as they pull back on EVs, a move sparked by President Donald Trump’s scrapping of hefty subsidies.

Both the US and the European Union have also relaxed targets on emissions after years of demanding cleaner vehicles.

The huge losses at Stellantis also come amid boardroom chaos after CEO Carlos Tavares was ousted over disagreements about his premium-pricing strategy.

He was replaced last July by Antonio Filosa, an Italian veteran of Fiat who immediately embarked on a management shake-up with a vow to restore profitability.

Stellantis’ revenue fell only by two per cent to 153.5 billion euros last year while its sales actually rose from 5.41 million vehicles in 2024 to 5.48 million last year.

‘Freedom to choose’

“Our 2025 full year results reflect the cost of over-estimating the pace of the energy transition,” said Filosa.

He said there was now a need to “reset our business around our customers’ freedom to choose from the full range of electric, hybrid and internal combustion technologies”.

The group posted a current operating loss of 842 million euros last year and will not pay any dividend.

In the second half of 2025, Stellantis saw a 10 per cent increase in sales to 2.8 million vehicles, an 11 per cent rise by volume, as US sales rebounded.

Filosa said he expected “further momentum to our return to profitable growth” this year, which the firm said would be driven by the arrival of new models, particularly combustion-engine pick-ups in the US.

The group predicted US tariffs would cost it 1.2 billion euros for 2025 and 1.6 billion for 2026, despite the US Supreme Court’s decision to strike down Trump’s levies.

Stellantis, formed in 2021 through a merger of France’s PSA Group and Italian-American company Fiat-Chrysler, had in recent weeks confirmed its shift away from the EV sector.

It sold its 49 per cent stake in NextStar Energy, behind the development of Canada’s first battery gigafactory, and is planning to exit a joint venture with Samsung to build two gigafactories in the US.

The group also announced it would relaunch combustion engine models in the US and Europe, including diesel.

Stellantis said those choices would not affect its broader commitment to electric.