Stellantis Q3: €453M Loss. Is the Comeback Real?

Stellantis Q3 Results

Is the Stellantis turnaround real?

What happened. The company behind Jeep, Ram, Dodge, Peugeot and Fiat reported third-quarter results on Wednesday. Revenue rose 1% to €37.6 billion. The net loss was €453 million, about 90% smaller than the €4.5 billion hole of a year ago. Adjusted operating profit nearly tripled, from €90 million to €256 million. CEO Antonio Filosa reaffirmed the full-year plan and promised positive industrial cash flow in 2027.

That sounds like a recovery. Now look closer. The operating margin was 0.7%. That means Stellantis kept less than one euro of every €100 in sales. Industrial free cash flow was minus €4 billion for the quarter. And €587 million of one-off charges dragged the bottom line, including €223 million tied to the Takata airbag recall.

Why it happened. North America is the engine room, and it’s a split story. Ram is roaring: Ram 1500 sales jumped 73%, helped by the return of the HEMI V8 and the TRX. Ram brand sales rose 30% in the region. But total North American shipments fell 12% to 357,000, because Stellantis paused production of the Jeep Grand Cherokee and Compass. In the US and Canada, sales slipped 0.3%. Mexico jumped 24%.

Europe flipped the other way. Shipments rose to 588,000, and electric car sales in the EU climbed 65%. Yet the European business swung to a loss, with a margin of minus 2.2%. Market share dipped 0.6 points to 14.8%. Tariffs add another weight: Stellantis expects about €1 billion in net tariff costs this year, with €600 million already paid.

Here’s the comparison that sticks. A year ago, Stellantis was a ship taking on water. Today the hole is 90% smaller, but the pumps still can’t keep up. Liquidity of €42.7 billion buys time. It doesn’t buy forever.

Who wins. Truck buyers. Ram’s V8 comeback is clearly working, and a company this hungry for cash will push its best seller hard. Expect more Ram trims and steady incentives. Mexico’s dealers win too. And Europe’s budget buyers get more affordable EVs, plus a new compact van.

Who loses. Jeep shoppers waiting on a Grand Cherokee or Compass, at least in the short run. European workers and dealers face a business that loses money on every sale. And shareholders still don’t see cash coming in.

What it means for you. If you’re shopping for a Ram, you’re buying into the hottest part of the company, so don’t expect fire-sale prices on the V8. If you want a Jeep, watch for stock gaps and ask dealers when the paused models restart. Stellantis says it expects higher shipments in the fourth quarter and stable pricing.

What happens next. Stellantis targets savings of several hundred million euros in the fourth quarter, about double the third. A Maserati strategy day is set for December 10 in Modena, and new Jeep and Peugeot models are coming for China. The real test is 2027: if cash flow turns positive, the turnaround is real. If not, today’s smaller loss was just a slower leak.

Mercedes-Benz

Mercedes cuts its profit outlook as China slides

Mercedes-Benz now expects its car division to earn a margin of just 2% to 3% this year, down from 3% to 5%. Group core profit should stay flat at about €5.8 billion, instead of growing at least 15%. The culprit is China, where deliveries fell another 29% in the first nine months. Rising material costs don’t help. Mercedes shares fell more than 4%, and it’s the third big German carmaker to trim its outlook this year.

Rivian

A Rivian van in Walmart+ colors spotted in Indiana

A Rivian electric van wearing Walmart+ branding was photographed on a car hauler on I-94 in northwest Indiana, and another showed up at a Walmart Supercenter in Hammond. Neither company has announced a deal. Still, Walmart needs vans: its earlier EV van partners, Canoo and GM’s BrightDrop, are gone. Amazon, Rivian’s biggest van customer, already runs more than 40,000. Rivian reports earnings on Thursday, so watch for hints.

Subaru

Subaru may sell only EVs in Europe from 2028, report says

Subaru could stop selling petrol cars in Europe as early as 2028, according to a Nikkei report. That would end the famous boxer-engine Forester and Crosstrek there. The math is simple: Subaru sold just 23,000 cars in Europe last fiscal year, under 3% of its 890,000 global total. Meeting tough Euro 7 rules for so few cars doesn’t pay. Kenyan Subaru fans can relax for now, since this is a Europe-only plan.