Stellantis, the automotive company that owns Chrysler and Jeep, disclosed a 4 billion euro ($4.5 billion) cash drain during the third quarter as it continues execution of its restructuring initiative. The company achieved third-quarter revenues of 37.6 billion euros, representing a 1% increase compared to the same period the previous year.
Adjusted operating income showed substantial improvement, rising 184% to 256 million euros from 90 million euros year-over-year. The company’s negative industrial free cash flow improved to 4 billion euros, an enhancement from 4.3 billion euros recorded in the prior-year period. Following the announcement, Stellantis shares advanced 3.6% upon the opening of European trading, though the stock has experienced a 62% decline since the start of the year.
The company is implementing a 60 billion euro ($66.7 billion) restructuring program, referred to as the FaSTLAne 2030 plan, to address years of sales contraction particularly in North America. Chief Executive Officer Antonio Filosa emphasized that the company made progress during the quarter through new product launches, expanded partnerships, and improvements in manufacturing and quality operations. Stellantis has reaffirmed expectations for positive industrial free cash flow in 2027.
The turnaround strategy includes 36 billion euros in investment across its automotive brand portfolio, with 60% of those funds targeted at the underperforming North America division. The initiative encompasses introducing new vehicles, refreshing existing models, and integrating new technologies. European automakers including Stellantis face heightened competition in China from domestic manufacturers such as Xiaomi, BYD, and Geely. Filosa has advocated for European regulators to implement measures that incentivize domestic vehicle manufacturing to counter Chinese competition in the region.
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