Stellantis Navigates Turbulent Waters as Chinese Venture Turns Profitable

Stellantis reports a massive €22.3B loss for 2025 but sees its Leapmotor investment pay off. The automaker cuts its dividend and prepares a new strategy for the US market.

Amid a profound corporate restructuring, automotive giant Stellantis finds itself at a crossroads. The parent company is grappling with significant financial headwinds, even as a strategic bet in Asia begins to pay dividends. The group's substantial investment in Chinese electric vehicle maker Leapmotor has yielded its first profit, offering a potential bright spot in an otherwise challenging period.

Parent Company Faces Steep Losses and Strategic Shift

The broader financial picture for Stellantis remains difficult. For the 2025 fiscal year, the automaker reported a net loss of 22.3 billion euros. This result was primarily driven by extraordinary depreciation charges totaling 25.4 billion euros. Management attributes these charges to a strategic pivot in response to shifting market dynamics, pulling back from certain pure-electric vehicle programs to focus on more flexible powertrain concepts.

To shore up its capital structure, the company has made several decisive moves. It has eliminated its dividend for 2026 and announced plans to issue hybrid bonds worth up to five billion euros. Investor sentiment reflects the prevailing uncertainty: the stock recently touched a new 52-week low of 5.72 euros, representing a decline of over 50% in the past twelve months.

Leapmotor Joint Venture Delivers Positive Results

In contrast to the parent company's struggles, the partnership with Leapmotor is showing promising signs. Last year, Leapmotor achieved a net profit of 538 million Chinese yuan. This milestone marks the startup's first profitable year since its founding, following a 1.5 billion euro investment from Stellantis.

The venture's success was fueled by the delivery of nearly 597,000 vehicles and a gross margin of 14.5%. A key growth driver was the "Leapmotor International" joint venture, which significantly boosted exports with over 67,000 units shipped.

Mixed Signals from Regional Markets and a Pivotal Date Ahead

Regional performance across Stellantis's operations presents a varied landscape. Deliveries in North America showed strength, increasing by 39% in the second half of 2025. However, this growth was offset by challenges in the United Kingdom, where the retail network is contending with mounting losses.

Looking forward, the company's leadership has reiterated its targets for the current year, aiming for mid-single-digit revenue growth despite the extensive overhaul. All eyes are now on a critical upcoming announcement. On May 21, 2026, CEO Antonio Filosa is scheduled to unveil a new industrial strategy. This plan is expected to provide detailed guidance on the group's approach to the crucial U.S. market and the global transition in vehicle propulsion.