News about Stellantis

Stellantis reported a 4 billion euro ($4.5 billion) cash shortfall in the third quarter as it continues its turnaround strategy of 60 billion euros ($66.7 billion) to restore profitability. Third-quarter revenue rose 1% to 37.6 billion euros, while adjusted operating income climbed 184% to 256 million euros from 90 million euros a year earlier. Negative industrial free cash flow narrowed to 4 billion euros from 4.3 billion a year earlier. Shares rose 3.6% after the European market opened but are down 62% since the start of the year. The company reaffirmed that it expects positive industrial free cash flow in 2027, and CEO Antonio Filosa said early progress has been made on the FaSTLAne 2030 plan.

Stellantis N.V. (STLA) shares fell 8% to $3.94 and are down 64% year to date, while Ford dropped 4% to $11.47 and General Motors slid 3% to $74.91. The article notes that Stellantis has not issued a guidance change or operational update that explains the decline, and its Q3 2026 report is due next week. Adjusted operating margin was 1.8% in Q2, the European region posted an adjusted operating loss, and North America sales grew 6%, a fourth straight quarterly gain. Management expects €6 billion in annual run-rate cost reductions by 2028, though S&P has downgraded the company to BBB- and Moody's to Baa3. Joao Laranjo, then finance chief, said Q3 will be impacted by the summer shutdown and raw material inflation, while full-year 2026 guidance was reaffirmed.

Stellantis CEO Antonio Filosa has urged European regulators to create stronger incentives for carmakers that build vehicles in the region, as sales decline and Chinese rivals accelerate. He backed the EU Commission’s proposed “Made in Europe” rules, which would require minimum local content for vehicles sold in the bloc. GlobalData says Chinese brands’ global auto-sales share rose nearly 70% from 2020 to 2025, while Dataforce data show the market share of car sales in Europe rose from close to zero in 2020 to 12% in August this year. Separately, the EU trade commissioner said China agreed to halve hybrid car exports to the bloc, and Stellantis shares rose 2.7% on the news. Stellantis shares are down almost 60% this year as the company pursues a $70 billion turnaround strategy.