Stellantis is slowly finding its feet again under CEO Antonio Filosa, with global losses shrinking dramatically and sales picking up. But Europe remains the weak spot in its recovery.
Despite selling more cars and recording a spectacular increase in electric vehicle sales, the group is losing money in its home market. The challenge is no longer simply attracting customers, but making a profit from the cars they buy.
The figures released on Wednesday reveal a striking contradiction. Stellantis, the parent company of Peugeot, Citroën, Opel, Fiat, Jeep, and several other brands, increased its European vehicle shipments by 10%. Yet the region recorded an adjusted operating loss of €311 million, compared with a €157 million profit a year earlier.
The problem is not a lack of customers, but how much Stellantis earns on each vehicle. Lower selling prices and a less profitable model mix are eating into margins, despite efforts to cut production costs.
Small cars bring volume, but little profit
More affordable models, including the Fiat Grande Panda, Citroën C3, and Opel Frontera, are helping Stellantis regain ground in Europe. But the picture is mixed: while the Frontera contributes to growth, Opel’s established Corsa and Mokka are among the models suffering declining shipments.
Looking ahead, Opel could reportedly revive the Agila name for an electric city car priced around €15,000, joining new entry-level models from Citroën and Fiat starting in 2028.
The project illustrates Stellantis’s determination to make electric mobility more affordable, although making these small cars profitable remains the bigger challenge.
However, smaller cars generally leave manufacturers with less room to profit, particularly when competition forces them to offer discounts. Interestingly, Stellantis is performing relatively well in terms of sales.
According to ACEA, its EU registrations increased by 5.1% in the first nine months of 2026, outperforming both the Volkswagen Group (+0.7%) and the Renault Group (−3.5%). But selling more cars is only half the battle.
Electric sales accelerate
Electrification provides another signal. Stellantis sold 65% more battery-electric passenger cars in Europe during the quarter than a year earlier. Including Leapmotor, growth reached 93%.
Electric light commercial vehicle sales also increased by 46%, suggesting that the group’s transition is gaining momentum across several segments.
Leapmotor is becoming an increasingly important part of that strategy. The Chinese manufacturer, in which Stellantis holds a substantial stake, benefits from its European distribution network, while Stellantis gains access to competitively priced Chinese-developed EVs.
Whether this combination can also deliver healthy profits remains an open question. The financial results do not establish that electric vehicles themselves are responsible for Europe’s losses.
Recovery is not yet complete
Globally, the picture looks brighter. Stellantis reduced its quarterly net loss from €4.5 billion last year to €453 million, although the earlier result was heavily affected by exceptional charges.
North America returned to a small adjusted operating profit, while South America remained profitable. Europe, meanwhile, continued to struggle. Nevertheless, the group generated just €256 million in adjusted operating profit on €37.6 billion in revenue, leaving a razor-thin margin of 0.7%.
More importantly, Stellantis consumed another €4 billion in industrial free cash flow during the quarter, although it still has substantial financial reserves.
Filosa is counting on new models, improved manufacturing efficiency, and a cost-cutting program targeting €6 billion in annual savings to restore profitability. Stellantis expects to return to positive industrial free cash flow in 2027.
