Half-year losses exceed 150 billion RMB—has the automotive industry’s 'Evergrande' truly arrived?

The auto industry’s 'Evergrande' has emerged: the world’s third-largest automaker, Stellantis Group, has suddenly imploded. You can hardly believe it—the global third-largest automaker, Stellantis Group, incurred losses exceeding 180 billion RMB in just six months! That amounts to a staggering 1 billion RMB in losses every day. Compounding the crisis, Stellantis’ European stock price plunged nearly 30% at one point—the largest single-day drop in its history—demonstrating the astonishing speed at which this European automotive giant collapsed. Though many may not recognize the name 'Stellantis Group,' brands such as Peugeot, Citroën, Jeep, Alfa Romeo, Maserati, Fiat, and Chrysler are household names. One company consolidates 14 international automotive brands—a true 'melting pot' of the global auto industry. This conglomerate was formed out of mutual necessity; failure was expected, while success would have been the real surprise. Last year, Stellantis narrowly edged out Hyundai-Kia Group to claim third place globally by vehicle sales. Yet selling more vehicles only deepened its losses—turning high volume into a curse rather than a blessing. At its core lies the collective dilemma currently facing Europe’s auto industry: the transition to electric and intelligent mobility. The powerful inertia of traditional industries—including century-old supply chains and manufacturing systems—has ironically become a heavy burden during the shift toward electrification and intelligence, making it extraordinarily difficult for this 'elephant' to pivot. Amid intensifying global demand shifts for electric vehicles, mounting cost pressures, and fiercer competition, Stellantis has been forced to temporarily hit the pause button on its EV business expansion. Europe’s automotive giants have fallen into a vicious cycle: 'the more they sell, the more they lose.' From 'cash cow' to 'black hole of massive losses,' Stellantis’ rapid downfall vividly reflects the realignment of the global automotive industry amid sweeping structural change. 01 A thunderclap erupts on calm ground—ten thousand acres of wind and rain descend all at once. Recently, grim news struck the auto industry: the world’s third-largest automotive group suddenly imploded, posting half-year losses exceeding 15 billion RMB. This automotive behemoth—owning 14 renowned brands including Jeep, Peugeot, Fiat, and Maserati—dropped a 'nuclear bomb' on the industry: announcing a comprehensive strategic retrenchment and restructuring of its electric vehicle business. These measures will trigger non-cash losses totaling $26 billion (approximately 18.04 billion RMB) and suspend dividend payments for 2026. This figure is over ten times higher than originally anticipated by the market. Upon announcement, investors voted with their feet—the stock plummeted instantly. On that day, its U.S.-listed shares (STLA.US) fell over 26% at market open and closed down 23.79%. Earlier, its French-listed shares (STLAP.PA) had also plunged nearly 30%, closing down 25.24%—setting the company’s worst-ever single-day decline record. The sudden black swan event reveals that, in the auto industry, traditional scale no longer serves as a protective talisman. Notably, Stellantis is not an organically grown automotive giant—it is the product of successive mergers. In 2014, the struggling American automaker Chrysler merged with the equally troubled Italian automaker Fiat, forming FCA. Both companies had long underperformed in the Chinese market and continued to be squeezed globally by German and Japanese rivals, lacking clear product or technological advantages.

This globally ranked third automaker still relies on China’s new-energy vehicle startups to build NEVs?

According to the latest 2025 global automotive group sales data, Toyota and Volkswagen remain firmly entrenched in the top two positions. The third spot, however, came as something of a surprise: it is no longer the Hyundai-Kia Group, but rather Europe’s Stellantis Group (English name: Stellantis). In 2025, Stellantis sold 7.8 million vehicles—edging out Hyundai-Kia Group (7.65 million vehicles sold in 2025) to claim third place among global automakers by annual sales. When it comes to Stellantis, many people may not be very familiar with the name. Yet if you mention brands like Peugeot, Citroën, or Maserati, far more people will recognize them—and all these brands belong to Stellantis. Public records show Stellantis was founded in 2019 through the merger of France’s PSA Group (Peugeot Citroën) and Italy’s Fiat Chrysler Automobiles (FCA), forming a multinational automaker. It currently owns 14 automotive brands—ranking as the world’s fourth-largest automaker and also appearing on the 2025 Fortune Global 500 list. Although Stellantis’ brands have performed relatively poorly in the domestic (Chinese) market, their performance across Europe and North America has been truly impressive. Otherwise, it wouldn’t have become the world’s third-highest-selling automaker—right behind Volkswagen and Toyota. Yet you might find it hard to believe that such a globally top-tier automaker—ranking just below Toyota and Volkswagen in sales—has encountered unprecedented crisis amid the past two years’ NEV transformation wave. Just recently, foreign media reported that Stellantis’ stock price collapsed overnight. As of February 6, its U.S.-listed shares plunged over 26% at market open and closed down 23.79%. Prior to that, its French-listed shares had already dropped nearly 30%, closing down 25.24%—setting a new record for its largest single-day decline ever. So here’s the question: why did Stellantis’ stock price crash despite its sky-high sales figures?

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