Stellantis (NYSE:STLA) could book exceptional costs of between €5 billion and €9 billion as part of a balance-sheet reset under newly appointed chief executive Antonio Filosa, according to analysis from Jefferies. The potential charges are seen as part of a wider strategic shake-up aimed at repositioning the group.
In a research note published on Tuesday, Jefferies analyst Philippe Houchois said up to €3 billion of the total could relate to asset impairments tied to a rethink of Stellantis’ electric vehicle strategy. The group, which owns brands including Peugeot and Jeep, may also need to allocate around €2 billion to compensate suppliers, the analyst added.
Further one-off costs could arise from a reassessment of warranty provisions and expenses linked to cutting production capacity in Canada. Houchois also pointed to the possibility of charges associated with exiting or scaling back battery joint ventures with LG and Samsung.
The analyst stressed that the estimates reflect his own analysis and are not based on guidance or commentary from Stellantis. He also suggested the group could issue an earnings pre-release ahead of its results.
A spokesperson for Stellantis declined to comment on the report. The company is due to publish its full-year financial results on 26 February.