Stellantis to Refocus on Ram, Jeep in $70 Billion Turnaround Push

Stellantis has unveiled a five-year strategic plan aimed at reversing a backslide after the global automaker posted a massive loss last year.

The company announced Thursday that it plans to invest 60 billion euros (about $69.7 billion) across its operations. The plan includes 36 billion euros (about $41.7 billion) for its broad portfolio of automotive brands, with 60 percent of that brand investment earmarked for North America.

The remaining 24 billion euros ($28 billion) in planned investment will go toward global vehicle platforms and new technologies, according to the company. Stellantis is also targeting annual cost savings of 6 billion euros ($6.9 billion) by 2028.

New Brand Management Focus

As part of the plan, Stellantis would launch more than 60 new vehicles and major updates to 50 existing models. The lineup will include 39 vehicles powered by internal combustion engines, along with 29 electric vehicles, 15 plug-in hybrids, and 24 hybrids.

The company said the plan reflects what it called “sharper management” of its 14-brand portfolio. About 70 percent of brand funding will be directed toward four “global brands”: Ram, Jeep, Fiat, and Peugeot.

Chrysler and Dodge, two of the automaker’s longest-running and most recognizable car brands, will remain part of the portfolio but will be classified as “regional brands” focused on North America. That places them in the back seat as most of the company’s North American funding shifts toward Ram and Jeep.

To help cut costs and simplify production, Stellantis plans to launch a new “STLA One” vehicle platform in 2027.

The platform is designed to consolidate five existing architectures into “one scalable architecture,” reducing complexity and expanding coverage across different vehicle types. The company said the new platform is expected to deliver a 20 percent improvement in cost efficiency.

Production Shifts and Partnerships

Stellantis said it will reduce production capacity in Europe by about 800,000 units, while seeking to “preserve manufacturing jobs.” The move comes as the company faces weaker demand, high costs, and regulatory pressure in the region.

In the United States, the automaker said it aims to raise capacity utilization to 80 percent by 2030. That effort will be supported in part by a $13 billion investment in U.S. manufacturing plants announced in October 2025.

In the Middle East and Africa, Stellantis said it expects its plants to reach full capacity.

The company also said it will continue working with major partners across the automotive industry.

Stellantis holds a majority stake in Chinese EV maker Leapmotor and has used that partnership to expand its lower-cost electric vehicle lineup outside China. On Wednesday, the company also announced plans to launch Chinese EVs in Europe through a similar joint venture with Dongfeng.

In the United States, Stellantis said it plans to explore potential collaboration with Jaguar Land Rover on product and technology development.

2025 Losses

The strategic overhaul follows a brutal 2025 for Stellantis. The company reported a net loss of 22.3 billion euros (about $26.3 billion), marking its first annual loss since it was formed in 2021 through the merger of the Italian-American Fiat Chrysler Automobiles and France’s PSA Group.

The automaker had posted a full-year profit of 5.5 billion euros ($6.3 billion) in 2024.

Stellantis said the 2025 loss was driven largely by 25.4 billion euros ($29.4 billion) in charges recorded in the second half of the year. Those charges included costs tied to resetting its EV product plan, changes to the company’s warranty provision estimates, and other expenses, including workforce reductions in Europe.

The scaling back of EV investment accounted for the largest share of the write-downs.