Stellantis narrows cash burn in Q3

Stellantis reported a 4 billion euro cash shortfall in the third quarter on Wednesday. That amount equals $4.5 billion. The figure marks an improvement from the 4.3 billion euro deficit recorded during the same period last year.

The company generated 37.6 billion euros in revenue, a 1% increase over the prior year. Adjusted operating income climbed 184% to 256 million euros, up from 90 million euros in the third quarter of 2025. Stellantis shares rose 3.6% shortly after European markets opened. However, the stock has fallen 62% since the start of 2026.

The results reflect the company's ongoing $70 billion turnaround strategy. CEO Antonio Filosa stated that the team continued making progress in the early execution of the FaSTLAne 2030 plan. He cited the launch of new products and accelerated partnerships as key achievements. Filosa also noted meaningful improvements in manufacturing and quality during the quarter.

The turnaround plan was detailed in May and spans five years. It targets positive industrial free cash flow by 2027. The strategy involves a 36 billion euro investment across the brand portfolio. Sixty percent of that cash will fund the North America sector, which has faced sustained sales declines.

European manufacturers face intensified competition from Chinese brands such as BYD, Xiaomi, and Geely. Porsche recently announced it would reduce its exposure to the Chinese market. Mercedes-Benz reported slumped third-quarter sales in the region due to a challenging environment. Filosa told CNBC earlier this month that regulators must incentivize local manufacturing to protect European design and engineering capabilities.

The automaker reaffirmed its expectation of achieving positive industrial free cash flow in 2027. The company plans to introduce new vehicles and refresh existing models. It will also incorporate new technologies into its product lineup as part of the broader restructuring effort.