Stellantis, the parent of American auto icons like Chrysler, Jeep, Dodge, and Ram, is in a financial tailspin and betting big on a return to gas-powered roots to turn things around.
According to the Daily Mail, after a staggering $2.68 billion loss in the first half of 2025, the company is reversing course on efficiency-driven models to reintroduce customer-favorite gas guzzlers, hoping to staunch a sales bleed while facing tariff burdens and looming price hikes.
Last year, Stellantis saw profits crater by 70%, signaling deep troubles for the Detroit Big Three automaker.
This year’s first-half loss, announced ahead of a scheduled earnings release on July 29, 2025, only deepened the crisis.
US shipments have plummeted by 25%, leaving dealership lots bloated with unsold inventory.
Dodge alone sits on 118 days’ worth of unsold cars, far above the industry average of 82 days.
In response, Stellantis is pivoting hard, bringing back gas-powered vehicles to US dealerships to recapture market demand.
Ram, for instance, is resurrecting the beloved Hemi V8 engine for its full-size pickup truck after last year’s shift to a less popular V6 flopped with buyers.
“We got it wrong,” admitted Tim Kuniskis, CEO of Ram, adding, “We're fixing it.”
Jeep is also jumping in, reintroducing the mid-sized Cherokee this year to compete in one of America’s hottest vehicle segments.
Dodge, which had pivoted to a new electric model, is now refocusing on a vehicle that resonates with its loyal base, acknowledging the misstep.
“This does not speak to the core customer,” noted Rella Suskin, a MorningStar analyst, on Dodge’s electric push.
Adding to the pain, Stellantis has incurred $350 million in tariffs this year due to trade policies, with costs projected to reach $1.5 billion by December. Dealership prices, which have been kept low until now by inventory gluts and pre-tariff stock, are expected to rise this year as these pressures intensify.
For investors and consumers, this saga at Stellantis is a stark reminder of how quickly market missteps and external costs can erode a giant’s foundation. The return to gas-powered models might boost sales in the short term, but with tariffs biting and a $2.68 billion hole to fill, the road ahead looks rough. Keep an eye on Stellantis’ next earnings—consider whether auto stocks, or even broader industrial ETFs, fit your portfolio in this volatile climate.