By AFP
February 6, 2026
Stellantis chief Antonio Filosa presenting a new Fiat 500 Hybrid at the company's plant in Turin, Italy, in November 2025 - Copyright AFP MARCO BERTORELLO
Jeep maker Stellantis warned Friday that it would take a 22 billion euro hit after a slower takeup of electric vehicles than it expected, the latest sign that legacy automakers are struggling to navigate the shift away from combustion engines.
The admission of a “significant overestimation” of demand for EVs comes as authorities in the US and Europe have eased strict emissions targets after years of demanding cleaner vehicles.
US auto giants Ford and General Motors also recently announced multibillion-dollar write-downs as they pull back on EV operations, sparked in large part by President Donald Trump’s scrapping of hefty US subsidies for electric cars.
But the colossal $26 billion write-down at Stellantis also comes after months of management turmoil that saw the ousting of former chief Carlos Tavares in late 2024 over his contested premium pricing policy.
He was replaced in July by Antonio Filosa, an Italian and Fiat veteran who immediately embarked on a management shake-up and a vow to restore profitability after a 70 percent plunge in 2024 net profit to 5.5 billion euros.
But Filosa has not stopped the erosion of Stellantis’s stock price, which plunged nearly 23 percent Friday to 6.32 euros — and has lost roughly three-fourths of its value since March 2024.
“The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires,” Filosa said in a statement.
“They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new team,” he said.
Filosa will host a conference call with investors at 2:00 pm (1300 GMT) on Friday.
– ‘Freedom of choice’ –
Stellantis, whose 14 brands also include Fiat and Peugeot as well as Ram trucks, Dodge, Chrysler and Maserati, has been slammed in particular by falling sales in its key North American market.
It was born of the 2021 merger of France’s PSA with its US-Italian rival Fiat Chrysler, creating the world’s fourth-biggest automaker.
“Even though a ‘reset’ was widely expected… the scope of today’s announcements are beyond even the most cautious expectations,” said analysts at investment bank Oddo BhF said, adding they had anticipated a 7 billion euro write-down.
In its statement, Stellantis said reducing its EV focus would offer clients “freedom of choice, including for those customers whose lifestyles and working requirements make the company’s growing range of hybrid and advanced internal combustion engine vehicles the right solution”.
As recently as October it announced plans to invest $13 billion in US plants over the next four years, widely seen as a response to Trump’s tariffs on imported autos and parts.
Later that month it posted a 13 percent rise in third-quarter revenues, citing improved business in the United States.
“We have gone deep into every corner of our business and are making the necessary changes, mobilising all the passion and ingenuity we have within Stellantis,” Filosa said in the statement.
VW and Stellantis urge help to keep carmaking in Europe
By AFP
February 5, 2026
Europe's carmakers are battling high manufacturing costs, weak demand and fierce competition - Copyright AFP Patrick T. Fallon
Europe’s largest carmakers Volkswagen and Stellantis have called for subsidies to keep carmaking in the EU as they struggle with challenges from US tariffs to Chinese competition, in an article published Thursday.
Electric cars largely made within the bloc should benefit from subsidies for buyers, orders from government as well as a “CO2 bonus” paid directly to carmakers, VW boss Oliver Blume and Stellantis chief Antonio Filosa said.
“European taxpayers’ money should be carefully deployed to promote European production and bring investment into the EU,” they wrote in a piece published in European media including French business newspaper Les Echos and German daily Handelsblatt.
“In a world where others proudly defend their industries, Europe must urgently decide whether it wants to become merely a market for others or remain a producer and industrial power in the future,” they added.
Europe’s automakers are struggling on multiple fronts, afflicted by tariffs imposed by US President Donald Trump as well as Chinese dominance of the supply chain for electric vehicles, including batteries and rare earths.
Chinese titans like BYD that have already eaten into market share of foreign carmakers in China are meanwhile establishing a foothold in Europe, leading to fears that the continent’s carmakers’ home-market could be in peril.
“Our companies have always built cars by Europeans for Europeans,” Blume and Filosa, who heads the Jeep-maker said, adding that their business model nevertheless faced “competition from importers operating under less demanding regulatory and social conditions than those in the EU.”
The EU has since 2024 levied higher tariffs on Chinese-made electric cars, alleging they benefit from unfair state subsidies.
But a “‘Made in Europe’ strategy” encompassing support for continental carmakers is necessary, Blume and Filosa said, since it is hard to sell competitively priced electric cars without relying on Chinese inputs.
“Our European customers rightly expect us to offer electric vehicles that are as affordable as possible,” they said.
“But the lower the price of a car, the greater the pressure to import the cheapest available batteries for it.”
By AFP
February 5, 2026
Europe's carmakers are battling high manufacturing costs, weak demand and fierce competition - Copyright AFP Patrick T. Fallon
Europe’s largest carmakers Volkswagen and Stellantis have called for subsidies to keep carmaking in the EU as they struggle with challenges from US tariffs to Chinese competition, in an article published Thursday.
Electric cars largely made within the bloc should benefit from subsidies for buyers, orders from government as well as a “CO2 bonus” paid directly to carmakers, VW boss Oliver Blume and Stellantis chief Antonio Filosa said.
“European taxpayers’ money should be carefully deployed to promote European production and bring investment into the EU,” they wrote in a piece published in European media including French business newspaper Les Echos and German daily Handelsblatt.
“In a world where others proudly defend their industries, Europe must urgently decide whether it wants to become merely a market for others or remain a producer and industrial power in the future,” they added.
Europe’s automakers are struggling on multiple fronts, afflicted by tariffs imposed by US President Donald Trump as well as Chinese dominance of the supply chain for electric vehicles, including batteries and rare earths.
Chinese titans like BYD that have already eaten into market share of foreign carmakers in China are meanwhile establishing a foothold in Europe, leading to fears that the continent’s carmakers’ home-market could be in peril.
“Our companies have always built cars by Europeans for Europeans,” Blume and Filosa, who heads the Jeep-maker said, adding that their business model nevertheless faced “competition from importers operating under less demanding regulatory and social conditions than those in the EU.”
The EU has since 2024 levied higher tariffs on Chinese-made electric cars, alleging they benefit from unfair state subsidies.
But a “‘Made in Europe’ strategy” encompassing support for continental carmakers is necessary, Blume and Filosa said, since it is hard to sell competitively priced electric cars without relying on Chinese inputs.
“Our European customers rightly expect us to offer electric vehicles that are as affordable as possible,” they said.
“But the lower the price of a car, the greater the pressure to import the cheapest available batteries for it.”
Toyota names new CEO, hikes profit forecasts
By AFP
February 6, 2026
Toyota announces a new CEO to 'accelerate management decision-making'
By AFP
February 6, 2026
Toyota announces a new CEO to 'accelerate management decision-making'
- Copyright AFP Kazuhiro NOGI
Toyota has named a new CEO to “accelerate” decision-making, the Japanese auto giant said Friday as it hiked its profit and sales forecasts for the current fiscal year despite the impact of US tariffs.
Current finance chief Kenta Kon will take over from chief executive Koji Sato on April 1 after three years in charge, the firm said.
“This change in roles is intended to accelerate management decision-making in response to changes in the internal and external environment,” Toyota said.
The move would also help “establish a structure that will enable Toyota to fully carry out its mission of contributing to society through industry,” it added.
The announcement came as the firm expects to see net profit of 3.57 trillion yen ($22.8 billion) for the year ending in March, down 25.1 percent year-on-year but up from the 2.93 trillion yen previously anticipated.
Despite the “negative impact of US tariffs that newly arose this fiscal year, we have reduced the extent of the profit decline by implementing cost reductions and marketing efforts”, the firm said in a statement.
Sales are expected to climb 4.1 percent year-on-year to 50 trillion yen, a slight upwards revision.
Operating profit is forecast to hit 3.8 trillion yen, up from the previous projection of 3.4 trillion yen.
However, Toyota said the September-December quarter saw net and operating profit fall despite a rise in sales, largely because of a “tariff impact” that increased expenses.
– Record sales –
The firm announced last month that global sales hit a new record in 2025, helping it retain its title as the world’s top automaker and widen the gap with German rival Volkswagen.
The overall increase came despite flat sales in China, a crucial market where Toyota faces intensifying competition from local automakers including electric-car champion BYD.
US sales climbed eight percent despite the 25-percent tariff on Japanese auto exports imposed by Washington between April and mid-September, when a 15-percent cap kicked in.
The United States is a key market where Toyota generates almost a quarter of its sales. But of the 2.52 million vehicles it sold there in 2025, only 1.39 million were produced in the country.
Even so, Toyota increased output last year by 10 percent at its factories in the United States, where it produces increasingly popular hybrid vehicles.
To keep exporting to the United States on competitive terms, Japanese automakers have had to slash prices.
kh-jug-stu-aph/am
Toyota has named a new CEO to “accelerate” decision-making, the Japanese auto giant said Friday as it hiked its profit and sales forecasts for the current fiscal year despite the impact of US tariffs.
Current finance chief Kenta Kon will take over from chief executive Koji Sato on April 1 after three years in charge, the firm said.
“This change in roles is intended to accelerate management decision-making in response to changes in the internal and external environment,” Toyota said.
The move would also help “establish a structure that will enable Toyota to fully carry out its mission of contributing to society through industry,” it added.
The announcement came as the firm expects to see net profit of 3.57 trillion yen ($22.8 billion) for the year ending in March, down 25.1 percent year-on-year but up from the 2.93 trillion yen previously anticipated.
Despite the “negative impact of US tariffs that newly arose this fiscal year, we have reduced the extent of the profit decline by implementing cost reductions and marketing efforts”, the firm said in a statement.
Sales are expected to climb 4.1 percent year-on-year to 50 trillion yen, a slight upwards revision.
Operating profit is forecast to hit 3.8 trillion yen, up from the previous projection of 3.4 trillion yen.
However, Toyota said the September-December quarter saw net and operating profit fall despite a rise in sales, largely because of a “tariff impact” that increased expenses.
– Record sales –
The firm announced last month that global sales hit a new record in 2025, helping it retain its title as the world’s top automaker and widen the gap with German rival Volkswagen.
The overall increase came despite flat sales in China, a crucial market where Toyota faces intensifying competition from local automakers including electric-car champion BYD.
US sales climbed eight percent despite the 25-percent tariff on Japanese auto exports imposed by Washington between April and mid-September, when a 15-percent cap kicked in.
The United States is a key market where Toyota generates almost a quarter of its sales. But of the 2.52 million vehicles it sold there in 2025, only 1.39 million were produced in the country.
Even so, Toyota increased output last year by 10 percent at its factories in the United States, where it produces increasingly popular hybrid vehicles.
To keep exporting to the United States on competitive terms, Japanese automakers have had to slash prices.
kh-jug-stu-aph/am
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