Stellantis Turns Profit After $26B Loss as Hemi Demand Surges and Cost Cuts Expand

Losses to Gains

Last year was a very tough year for the Stellantis group of automotive brands. Across the board, it reported a $26 billion loss, the group's first annual loss since its formation in 2021. Diving deeper, in Q1 of 2025, it lost $454 million alone, a harbinger of what was to come for the rest of the year.

Eager to turn things around, Stellantis CEO Antonio Filosa boldly launched a recovery program that would right the ship. So far, things seem to have worked, but further changes are on the way, according to the CEO.

Cost-Cutting and Hemi to the Rescue

Q1 2026 saw positive gains for the group with a reported profit of $440 million. Filosa is doubling down on his strategy called the Value Creation Program (VCP), which will see Stellantis implement a cost-cutting plan across the globe. While his plan is labeled as global, he did quantify that it will mainly focus on North America and Europe, plus it'll have very "ambitious" targets.

He didn't go into the nitty-gritty of the program, but Filosa did say that it'll include a "fixed cost management" element. This was announced during a quarterly sales call last April 30.

More details on the VCP will be announced on May 21 in Michigan during a capital markets day. Filosa is also optimistic about the North American sales trend for 2026. He highlighted key elements driving the upward trend.

He says there are now higher vehicle orders for Hemi V8 models, high-profit Jeep models, and the Dodge Challenger six-pack, their remake of the classic American muscle nameplate. According to their internal numbers, Filosa said that 40% of Ram sales in the 1st quarter of the year have been for the Hemi-powered variant. Lastly, new model launches for the Ram 1500 SRT TRX pickup, the Jeep Wagoneer extended-range EV, and the Jeep Recon electric SUV are expected to also boost profits.

Across the Pond

When it comes to Europe, Filosa is being more cautious in his optimism, citing that the region, which includes the Balkans and Eurasia, will likely reach what he calls breakeven plus in sales. Most of the controlled optimism comes from the growth of the Chinese automakers in the region, which North America doesn't have. Filosa doesn't see a partnership with a Chinese brand for North America just yet, but Stellantis' 20% stake in the Chinese brand Leapmotor is growing in Europe and South America.

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