A Challenging Period for Stellantis and its Reflections on Tofaş

Stellantis's financial results for the first six months of 2025 were, as expected, negative. The company's sales dropped from €85 billion to €64.3 billion, a decrease of 13%, even after spending €1.9 billion on price reductions.

Operating profitability also saw a serious decline, falling from a legendary double-digit 10% to just 0.7%. One of the most critical issues is the worse-than-expected cash flow of -€3.0 billion, indicating that the company is currently burning significant cash. It is noted that very drastic measures will be needed to stop this.

It seems the company has included all negative expectations in these first-half results to clear the path for the new CEO. Better and more corrected results are anticipated for the second half of the year. While a solid recovery plan has not yet been announced to reassure the market, it is likely to be revealed in September, which could kickstart a recovery similar to Volkswagen's.

Last year was called the "autumn of the automotive industry," and this year is being referred to as the "winter of the automotive industry."

These developments are not considered positive for Tofaş, Stellantis's subsidiary in Turkey. The lack of sufficient models for Tofaş is highlighted as a disadvantage. As the Stellantis Group stops many models and scales down, and with excess capacity in France, Italy, and Spain, it seems difficult for Tofaş to secure a new model.

While the government's recent VAT incentive for the Egea might help for a while, a short-term solution could be to redirect a portion of the Doblo units sent to Spain (to meet domestic market needs).

It is hoped that positive news will emerge for Tofaş, one of the most valuable companies in the Turkish automotive industry.