Quick Read
- Stellantis will not issue profit-sharing checks to UAW workers for their 2025 performance.
- This is the first time since 2011 that Stellantis’ U.S. hourly workers have missed profit-sharing.
- The decision follows a €22.3 billion net loss reported by Stellantis for the full year 2025.
- North American profit margin for Stellantis was negative 3.1% in 2025, falling below UAW agreement thresholds.
- Rival automakers Ford and GM are still paying profit-sharing bonuses to their UAW employees for 2025.
AMSTERDAM (Azat TV) – Stellantis N.V., the multinational automotive corporation, has announced it will not distribute profit-sharing payouts to its UAW-represented employees for their work in 2025. This marks the first time since early 2011, covering the 2010 financial results, that U.S. hourly workers under Stellantis or its predecessor companies have not received an annual profit-sharing bonus. The decision comes after Stellantis reported a substantial net loss of €22.3 billion for the full year 2025, driven by significant strategic charges.
The absence of profit-sharing checks stands in stark contrast to payouts expected by UAW colleagues at rival automakers, Ford Motor Co. and General Motors Co., who are set to receive $6,780 and $10,500 respectively for their 2025 performance. This development is likely to impact the morale and financial well-being of Stellantis’ unionized workforce, potentially straining labor relations.
Stellantis’ Substantial 2025 Financial Loss
Stellantis’ Full Year 2025 results, released on February 26, 2026, revealed a net loss of €22.3 billion on net revenues of €153.5 billion, a 2% decrease from 2024. The company attributed this downturn to strong foreign exchange headwinds and net pricing declines in the first half of 2025, although partially offset by higher volume and mix. A major contributing factor to the loss was €25.4 billion in charges, primarily related to a ‘profound strategic shift to meet customer preferences and reflect shifts in regulatory frameworks,’ as stated by Stellantis. These charges included a significant reset of its business, announced on February 6, 2026, totaling approximately €22.2 billion, which encompasses resetting the product plan, adjusting the EV supply chain, changing estimation processes for contractual warranty provisions, and costs associated with workforce reductions in Enlarged Europe.
For its North American operations, the region critical for UAW profit-sharing calculations, Stellantis posted a negative 3.1% profit margin in 2025. This was a significant decline from 4.2% in 2024 and 15.4% in 2023. Factors contributing to this regional underperformance included U.S. vehicle sales falling for the seventh consecutive year, product mix issues, the high cost of U.S. tariffs under President Donald Trump, increased warranty costs, and elevated vehicle incentive spending, according to The Detroit News.
Impact on UAW Workers and Profit Sharing Mechanics
The 2023 UAW collective bargaining agreement stipulates that union-represented employees receive $900 for every 1% of profit margin achieved in North America, with the actual payout adjusted based on the number of hours an employee worked. Since North American results did not meet the minimum thresholds defined in the agreement, no profit sharing will be paid for 2025. This decision breaks a long-standing tradition, as Stellantis workers had received substantial payouts in previous years, including $14,760 in 2022 and $13,860 in 2023, though the 2024 payout for 2023’s results had already dropped significantly to $3,780, a 73% decrease.
The lack of a payout is a notable financial blow to thousands of Stellantis’ UAW-represented employees, especially when compared to their counterparts at Ford and GM. Both Ford and GM, while also seeing reduced payouts from their record highs in prior years, are still distributing significant bonuses to their unionized workforces. General Motors Co. announced payouts of up to $10,500 to over 47,000 eligible workers, while Ford Motor Co. confirmed bonuses of about $6,780 for its 56,300 eligible employees.
Stellantis’ Outlook and Strategic Reset
Despite the challenging 2025 results, Stellantis has reiterated its 2026 guidance, projecting progressive improvement in net revenue, adjusted operating income (AOI), and industrial free cash flow generation year over year. The company anticipates a mid-single-digit percent increase in net revenues and a low-single-digit AOI margin. Stellantis believes that its recent ‘decisive actions,’ including the strategic reset and the introduction of new models, will support profitable growth.
Key product launches expected to drive momentum include the re-entry of the Jeep® Cherokee and Dodge Charger SIXPACK into the mid-SUV and ICE muscle-car segments in North America, along with the late-2025 launch of the Ram 1500 HEMI® V8 and Express models. The company also highlighted improved operational efficiencies and disciplined commercial strategies in the latter half of 2025, which saw consolidated shipments increase by 11% year-over-year. Stellantis emphasized its renewed focus on quality management, reporting a decrease of over 50% in reported issues for North American vehicles in their first month of service since the beginning of 2025.
The decision by Stellantis to withhold profit-sharing payouts underscores the profound financial impact of its strategic pivot and the challenging market conditions faced by the automotive industry in 2025. While the company projects a more positive outlook for 2026, this move could test the strength of its labor relations and highlights the immediate financial consequences for its UAW workforce amidst a period of significant corporate transformation.