Q3 2025 Stellantis NV Earnings Call

October 30, 2025

Operator: I'll now hand you over to your host, Mr. Ed Ditmire, Head of Investor Relations at Stellantis. Mr. Ditmire, please go ahead.

<unk> head of Investor Relations at still Lantus. Mr. Dickmeyer. Please go ahead.

Thank you.

Everyone and thank you for joining us today as we review <unk> third quarter 2025 shipments and revenues earlier today the presentation material for this call along with the related press release were posted under the investors section of this Atlantis group website.

Ed Ditmire: Thank you. Hello everyone, thank you for joining us today as we review Stellantis's Q3 2025 shipments and revenues. Earlier today, the presentation material for this call, along with the related press release, were posted under the investors section of the Stellantis Group website. Today, our call is hosted by Antonio Filosa, Chief Executive Officer, and João Laranjo, Chief Financial Officer. After their prepared remarks, Antonio and João will be available to answer questions from the analysts. Before we begin, I want to point out that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the Safe Harbor statement included on page two of today's presentation. As customary, the call will be governed by that language. Now I'll hand over the call to Antonio Filosa, Chief Executive Officer, Stellantis.

Our call is hosted by Antonio <unk>, Chief Executive Officer, and Joe I'll Lorenzo.

Financial officer after their prepared remarks, Antonio and Joanne will be available to answer questions from the analysts.

Before we begin I want to point out that any forward looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the Safe Harbor statement included on page two of today's presentation as customary the call will be governed by that language now I'll hand over the call to Antonio Floater, Chief Executive Officer Sylvain.

This.

Well, thank you Ed and Hello, everyone and thank you all for joining us today.

Antonio Filosa: Well, thank you, Ed. Hello everyone, and thank you all for joining us today. First of all, please let me recognize our teammates that are struggling with the effects of the terrible hurricane in Jamaica and surrounding areas. We are very close to them. Let's get started. There are three important topics we want to cover today. First, how our commercial plan is progressing with a Q3 return to top-line growth. Second, I want to cover our recently announced $13 billion investment in our U.S. manufacturing and product to explain the new opportunities it opens. Third, João will take you through the numbers we are reporting and give you our assessment of the second half 2025 outlook. Let's begin with a summary overview of the Q3. First, let's look at the performance, which improved as we progressed our commercial plans.

First of all please let me to recognize our teammates that are struggling with the effects of the Teddy both hurricane in Jamaica and surrounding areas.

We have a very close to them.

So let's get started there.

There are three important topics, we want to cover today.

First.

Speaker #1: Ladies and gentlemen , welcome to the Stellantis third quarter 2025 shipments and revenues . Call . I will now hand you over to your host , Mr. Edward Ditmire , Head of Investor Relations at Stellantis .

Operator: Ladies and gentlemen, welcome to the Stellantis N.V. third quarter 2025 shipments and revenues call. I will now hand you over to your host, Mr. Ed Ditmire, Head of Investor Relations at Stellantis N.V. Mr. Ditmire, please go ahead.

Our commercial plan is progressing with a third quarter return to top line growth.

Second.

I want to call that our recently announced at the 13 and billion dollar investment in our U S manufacturing and product suite.

Speaker #1: Mr. Dittmeyer . Please go ahead .

We split the new opportunities it opens.

Speaker #2: Thank you . Hello , everyone , and thank you for joining us today . As we review Stellantis third quarter 2025 Shipments and revenues .

Ed Ditmire: Thank you. Hello everyone and thank you for joining us today as we review Stellantis N.V. third quarter 2025 shipments and revenues earlier today. The presentation material for this call, along with the related press release, were posted under the Investors section of the Stellantis N.V. website today. Our call is hosted by Antonio Filosa, Chief Executive Officer, and Joao Larango, Chief Financial Officer. After their prepared remarks, Antonio and Joao will be available to answer questions from the analysts. Before we begin, I want to point out that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included on page two of today's presentation. As customary, the call will be governed by that language. Now, I'll hand over the call to Antonio Filosa, Chief Executive Officer, Stellantis N.V.

And told you.

You all will take you through the numbers, we are reporting and give you our assessment of the second half 2025 outlook.

Speaker #2: Earlier today , the presentation material for this call , along with the related press release , were posted under the investor section of the Stellantis Group website .

So let's begin with the summary overview of the third quarter.

Speaker #2: Today , our call is hosted by Antonio Filosa Chief Executive Officer and Joel Lourenco , chief Financial Officer . After their prepared remarks , Antonio and Joao will be available to answer questions from the analyst .

First let's look at the performance.

Which improve it as we progress in our commercial plans.

Consolidated shipments and net revenue both increased 13% compared to the prior year.

Antonio Filosa: Consolidated shipments and net revenue both increased 13% compared to the prior year, and we delivered a global sales performance that was 4% higher year-over-year. That sales performance included a sequential increase in market share in North America and even stronger trends in the United States. At the same time, we also saw some share contraction in Europe for a reason I will explain shortly. Second, we announced our $13 billion US investment program, which directs significant capital into our US products, plants, and production. For customers, this means we are reentering segments where we have been missing for too long and extending powertrain choices in ways we know our customers love.

Speaker #2: Before we begin , I want to point out that any forward looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the safe Harbor statement included on presentation .

And we don't even have the global sales performance that was 4% higher year over year.

Net sales for the four months included a sequential increase in market share in North America.

Speaker #2: As customary , the call will be governed by that language . Now I'll hand over the call to Antonio Filosa Chief Executive Officer , Stellantis .

I need a stronger trends in the United States.

At the same time, we also saw some share contraction in Europe for reasons I will explain shortly.

Speaker #3: Well , thank you , Ed and hello , everyone , and thank you all for joining us today . First of all , please let me to recognize our teammates that are struggling with the effects of the terrible hurricane in Jamaica .

Antonio Filosa: Thank you, Ed. Hello everyone. Thank you all for joining us today. First of all, please let me recognize our teammates that are struggling with the effects of the terrible hurricane in Jamaica and surrounding areas. We are very close to them, so let's get started. There are three important topics we want to cover today. First, our commercial plan is progressing with a third quarter return to top line growth. Second, I want to cover our recently announced $13 billion investment in our U.S. manufacturing and product to explain the new opportunities it opens. Third, Joao will take you through the numbers we are reporting and give you our assessment of the second half 2025 outlook. Let's begin with a summary overview of the third quarter. First, let's look at the performance which improved as we progressed.

Second.

We announced at our $13 billion out of U S investment program.

Which directs significant capital into our U S products plants and production.

Speaker #3: And surrounding areas . We are very close to them . So let's get started . There are three important topics we want to cover today .

For customers. These.

These means we are re entering segments, where we have been missing for too long.

And extending powertrain choices you ways, we know our customers love.

Speaker #3: First , our commercial plan is progressing with a third quarter return to top line growth . Second , I want to cover our recently announced

Lastly.

We are confirming our second half 2025 financial guidance.

Antonio Filosa: We are confirming our 2nd half 2025 financial guidance, which implies continued sequential improvement, and at the same time we will continue what we started in the first half to structure our business for profitable growth. Let's go into more details on our commercial progress. Products. This year we set out a plan to launch 10 major new products. In Q3, we launched the fifth and the sixth of those, the Citroën C5 Aircross and the DS N°8, both on the rapidly scaling STLA Medium platform. We have four important remaining products scheduled to launch very soon, two in North America and two in Europe. I will detail why each can be very impactful. Let's look at the two launched in North America.

Which implies continuous sequential improvement.

And at the same time, we will continue with what we started in the first half.

The structure of our business for profitable growth.

Yeah.

Now, let's go into more details on our commercial progress.

Speaker #3: 2025 outlook . So let's page two of today's begin with a summary overview of the third quarter . First , let's look at the performance , which improved as we progressed .

First products.

This year, we set out a plan to launch 10 major new products.

In the third quarter, we launched the fifth and sixth dose.

Speaker #3: Our commercial plans consolidated shipments and net revenue both increased 13% compared to the prior year . And we delivered a global sales performance that was 4% higher year over year .

Antonio Filosa: Our commercial plans, consolidated shipments, and net revenue both increased 13% compared to the prior year. We delivered a global sales performance that was 4% higher year over year. That sales performance included a sequential increase in market share in North America and even stronger trends in the U.S. At the same time, we also saw some share contraction in Europe, for reasons I will explain shortly. We announced our $13 billion U.S. investment program which directs significant capital into our U.S. products, plants, and production for customers. This means we are reentering segments where we have been missing for too long and extending powertrain choices in ways we know our customers love. We are confirming our second half 2025 financial guidance, which implies continued sequential improvement. At the same time, we'll continue what we started in the first half to structure our business for profitable growth.

The Citral N C five aircrafts and the D S number eight.

Both on the rapidly scaling.

That'll on medium platform.

We have four important remaining products scheduled to launch very soon to in North America and two in Europe.

Speaker #3: That sales performance included a sequential increase in market share in North America, with even stronger trends in the United States. At the same time, we also saw some share contraction in Europe for reasons I will explain shortly.

And I will detail why each can be very impactful.

So let's look at the true launch it in North America.

The Jeep Cherokee marks our return to the mid sized SUV market in the U S.

Speaker #3: Second , we announced our $13 billion US investment program , which directs significant capital into our US products , plants and production for customers .

Antonio Filosa: The Jeep Cherokee marks our return to the mid-size SUV market in the US, the largest vehicle segment, around the fifth of total volume of the industry. Jeep Cherokee will bring us back into that huge mid-size SUV segment with a very competitive design and capabilities. For example, the new Cherokee has significantly more room and the brand's first-ever full hybrid powertrain, dramatically boosting fuel efficiency and range. Moving to Dodge, we will soon begin production of the exciting Charger SIXPACK in both two- and four-door configurations after more than two-year absence. The initial Scat Pack high-output two-door trims sold out the entire 2026 model year when we opened for orders. Now let's go to Europe. The Jeep Compass has had considerable success in the past. This new generation Compass, built on the STLA Medium platform, features three powertrain options: BEV, PHEV, and hybrid for the first time ever.

A lot of jet vehicles segment.

And on the fifth of total volume of the industry.

Jeep Cherokee will bring us back into that huge amid this youll be segment, we've had bailey competitive with design and capabilities.

Speaker #3: This means we are re-entering segments where we have been missing for too long and extending powertrain choices in ways we know our customers love .

For example.

The new Cherokee has significantly more room.

Speaker #3: Lastly , we are confirming our second half 2025 financial guidance , which implies continued sequential improvement and at the same time , we will continue what we started in the first half to structure our business for profitable growth .

And the brand's first ever full IBD powertrain.

Dramatically boosting fuel efficiency and range.

Moving to knowledge, we will soon begin production of the exciting guys each outage at a six pack.

In both two and four door configurations.

After more than two year absence.

Speaker #3: Now let's go into more details on our commercial progress . First , products . This year we set out a plan to launch ten major new products in the third quarter .

Antonio Filosa: Now let's go into more details on our commercial progress. First, products this year we set out a plan to launch 10 major new products in the third quarter. We launched the fifth and the sixth of those, the C Tron, C5 Aircross, and the DS number eight, both on the rapidly scaling TELA medium platform. We have four important remaining products scheduled to launch very soon, two in North America and two in Europe, and I will detail why each can be very impactful. Let's look at the two launches in North America. The Jeep Cherokee marks our return to the mid-sized SUV market in the U.S., the largest vehicle segment, around a fifth of total volume of the industry. Jeep Cherokee will bring us back into that huge mid SUV segment with a very competitive design and capabilities.

The initial Scatback high output Trudeau themes sold out the entire 2026 model year.

When we opened the four orders.

Now, let's go to Europe.

The ZIP compas has had considerable success in the past these.

Speaker #3: We launched the fifth and sixth of those . The Citroen C5 Aircross and the DS number eight . Both on the rapidly scaling medium platform .

These new generation compounds built on the stellar medium platform.

Features three powertrain options B V P.

Th heavy and I believe for the first time ever.

Speaker #3: We have four important remaining products scheduled to launch very soon: two in North America and two in Europe. I will detail why each can be very impactful.

And then the Fiat 500 hybrid Wan, especially close to my heart is an Italian.

Antonio Filosa: The Fiat 500 Hybrid, one especially close to my heart as an Italian, which will enable this very successful nameplate to appeal to a much wider audience than it could be as a BEV-only product. Let's look closer at North America. This was a very exciting quarter, with market share in the US starting to improve, a strident order book, and strong execution of the new product pipeline. US sales rose 6% versus the prior year, with several Jeep products, Wrangler, Gladiator, and Wagoneer, showing solid gains. Our new Ram Express and 1500 HEMI V8 variants began shipping. These products are likely to show a bigger sales impact in Q4 as availability on dealer lots increases. Since announcement, we have received more than 43,000 dealers' orders.

Which will enable these be the successful nameplate to appeal to a much wider audience.

Speaker #3: So, let's look at the two launches in North America. The Jeep Cherokee marks our return to the mid-size SUV market in the U.S.

That it could be as a BV only product.

Now, let's look closer at North America.

Speaker #3: The largest vehicle segment around a fifth of total volume of the industry Jeep Cherokee will bring us back into that huge mid SUV segment with a very competitive design and capabilities for example , the new Cherokee has significantly more room and the brand's first ever full hybrid powertrain , dramatically boosting fuel efficiency and range .

This was a very exciting quarter.

With our market share in the U S starting to improve.

A threat them or their book.

And song execution of the new product pipeline.

U S sales rose, 6% versus the prior year with.

Antonio Filosa: For example, the new Cherokee has significantly more room and the brand's first ever full hybrid powertrain, dramatically boosting fuel efficiency and range. Moving to Dodge, we will soon begin production of the exciting Dodge Charger (IZ variant) 6 pack in both two and four door configurations after more than two year absence. The initial Scat Pack high output two door trims sold out the entire 2026 model year when we opened for orders. Now let's go to Europe. The Jeep Compass has had considerable success in the past. This new generation Compass, built on the STLA Medium platform, features three powertrain options, BEV, PHEV, and hybrids for the first time ever. The Fiat 500 Hybrid, one especially close to my heart as an Italian, will enable this very successful nameplate to appeal to a much wider audience than it could be as a BEV only product.

With several jeep products Wrangler Gladiator embargo on here.

Solid gains.

Our new Ram Express in the 1500, Amy V eight variance began shipping.

Speaker #3: Moving to Dodge , we will soon begin production of the exciting eyes Charger six pack in both two and four door configurations . After more than two year absence , the initial Scat Pack high output door trims sold out the entire 2026 model year .

These products are likely to show a bigger sales impact in the fourth quarter as our viability on dealer lots increases.

Since the announcement, we have received more than 43000 dealers orders.

And in fourth quarter, we are launching our updated Jeep Grand bargain near lab, just Ya Li.

Antonio Filosa: In Q4, we are launching our updated Jeep Grand Wagoneer large SUV and that all-new Jeep Cherokee midsize SUV. Our momentum in the US is starting to pick up, even before the very important new US investment program that I will discuss shortly. To Europe. Here we are making solid progress executing the product plan, but the contest is tough, with softer volumes in the French, Italian, and light commercial vehicle markets where we are the biggest player. Due primarily to these market mix headwinds, our Q3 EU-30 market share was down 70 basis points versus prior year. We are taking the necessary step to earn that back. In the A segment, we will be introducing the Fiat 500 Hybrids, where we see significant pent-up demand, especially in Italy. In the B segment, we are continuing to ramp up the new Smart Car platform products.

Speaker #3: When we opened for orders . Now let's go to Europe . The Jeep Compass has had considerable success in the past . This new generation compass built on the stellar medium platform , features three powertrain options Bev , Phev , and hybrid .

And that's all new Jeep Cherokee midsize SUV.

So our momentum in the U S is starting to pick up even before the very important new U S investment program.

That I will discuss shortly.

Now to Europe.

Yeah, we are making solid progress executing the product plan.

Speaker #3: For the first time ever , and then the Fiat 500 hybrid one , especially close to my heart , as an Italian , which will enable this very successful nameplate to appeal to a much wider audience that it could be as a BV only product .

The context is tough.

With softer volumes in the French Italian and light commercial vehicle markets.

Where do we have the biggest player.

You primarily to these market mix headwinds, our third quarter, the EU towards the market share was down 70 basis points versus prior year.

Speaker #3: Now let's look closer at North America . This was a very exciting quarter with market share in the US starting to improve as order book and strong execution of the new product pipeline , US sales rose 6% versus the prior year , with several Jeep products , Wrangler , Gladiator and Virginia showing solid gains .

Antonio Filosa: Now let's look closer at North America. This was a very exciting quarter with market share in the U.S. starting to improve, a strident order book, and strong execution of the new product pipeline. U.S. sales rose 6% versus the prior year with several Jeep products, Wrangler, Gladiator, and Wagoneer showing solid gains. Our new Ram Express and Ram 1500 Hemi V8 variants began shipping. These products are likely to show a bigger sales impact in the fourth quarter as availability on dealer lots increases. Since announcement, we have received more than 43,000 dealer orders and in fourth quarter we are launching our updated Jeep Grand Wagoneer large SUV and that all new Jeep Cherokee midsize SUV. Our momentum in the U.S. is starting to pick up even before the very important new U.S. investment program that I will discuss shortly. Now to Europe.

We are taking the necessity step to earn that back.

NDA segments, we will be introducing the Fiat 500 I believe.

We see significant pent up demand, especially in Italy.

In the beef segment, we are continuing to ramp up the news Moscow platform products.

Next we will launch the IV they have shown of the peer to grant the panda.

Antonio Filosa: We will launch the IZ version of the Fiat Grande Panda. In the C segment, we will launch soon the Jeep Compass. At the same time, together with other members of the ACEA, we are heavily engaged with European policymakers to define and implement urgently needed reforms to revitalize the European auto industry. I believe there is a strong cross-industry consensus that the rules need to change and change quickly. Last quarter, I highlighted six near-term opportunities we had to improve profitability, spend in new products, changes for the new model year vehicles, and improve manufacturing and operational efficiencies. I'm happy to report we are making good progress. The return of the HEMI V8 to the Ram 1500 light-duty trucks in Q3 has delighted many of our customers. SRT.

And then the C segment, we will launch soon the Jeep compass.

Speaker #3: Our new Ram Express and 1500 V8 variants began shipping . These products are likely to show a bigger sales impact in the fourth quarter , as availability on dealer lots increases .

At the same time together with other members of the <unk>.

We are able to engage with European policymakers to define and implement your gently needed reforms to revitalise the European auto industry.

Speaker #3: Since the announcement, we have received more than 43,000 dealer orders, and in the fourth quarter, we are launching our updated Jeep Grand Wagoneer large SUV.

I believe there is a strong cross industry consensus that the rules need to change and change quickly.

Speaker #3: And that all new Jeep Cherokee mid-size SUV . So our momentum in the US is starting to pick up even before the very important new US investment program that I will discuss shortly .

Last quarter highlighted six near term opportunities, we have to improve profitability.

Spending on new products.

Changes for the new model year vehicles, it improved manufacturing and operational efficiencies.

Speaker #3: Now to Europe . Here we are making solid progress executing the product plan , but the contest is tough with softer volumes in the French , Italian and light commercial vehicle markets where we are the biggest player due primarily to this market mix .

Antonio Filosa: Here we are making solid progress executing the product plan, but the contest is tough with softer volumes in the French, Italian, and light commercial vehicle markets where we are the biggest player. Due primarily to these market mix headwinds, our third quarter EU30 market share was down 70 basis points versus prior year. We are taking the necessary step to earn that back. In the A segment, we will be introducing the Fiat 500 Hybrid where we see significant pent up demand, especially in Italy. In the B segment, we are continuing to ramp up the new smart car platform products. Next we will launch the IZ version of the Fiat Grande Panda and in the C segment we will launch soon the Jeep Compass.

And I'm happy to report, we are making good progress.

The return of the N V eight to the ROM 1500 of light duty trucks in the third quarter is the idea that many of our customers.

Next SRT.

Speaker #3: Headwinds. Our third quarter EU 30 market share was down 70 basis points versus the prior year. We are taking the necessary steps to earn that back in the segment.

We will bring in initial SRT model, the Dodge Durango SRT al Katz.

Antonio Filosa: We will bring an initial SRT model, the Dodge Durango SRT Hellcat, to market in Q4. This will be the first of several SRT products that we will launch in the coming years. We pointed to the ramping up of the four Smart Car platform products in Europe. In Q3, we increased production by 57,000 units year-over-year, which is exciting because we have approximately 120,000 orders for these vehicles in our order book. Next, I want to recognize our global Pro One commercial vehicle organization. This is a critical differentiator for us. Our great commercial vehicle products represent roughly 30% of our revenues in aggregate across the regions. In Europe, where we are number one in commercial vehicles with a solid 28% share, we are expanding our in-house customizations options.

Two market in the fourth quarter.

These will be the first of several SRT products that we will launch in the coming years.

Speaker #3: We will be introducing the Fiat 500 hybrids , where we see significant pent up demand , especially in Italy in the B segment , we are continuing to ramp up the new smart car platform products .

And we pointed to the ramping up of the forest Mascara platform products in Europe.

In the third quarter, we increased production by 57000 units year over year, which is exciting because we have approximately 120000 orders for these vehicles in our order book.

Speaker #3: Next , we will launch the Ise version of the Fiat Grand Panda and in the Sea segment , we will launch soon . The Jeep Compass .

Next I want to recognize our global pro one commercial vehicles organization.

Speaker #3: At the same time , together with other members of the Asia , we are heavily engaged with European policymakers to define and implement urgently needed reforms to revitalize the European auto industry .

Antonio Filosa: At the same time, together with other members of the ASEA, we are heavily engaged with European policymakers to define and implement urgently needed reforms to revitalize the European auto industry. I believe there is a strong cross-industry consensus that the rules need to change and change quickly. Last quarter I highlighted six near-term opportunities we had to improve profitability, spending, new products, changes for the new model year vehicles, and improved manufacturing and operational efficiencies, and I'm happy to report we are making good progress. The return of the Hemi V8 to the Ram 1500 light duty trucks in the third quarter has delighted many of our customers. Next, SRT, we will bring an initial SRT model, the Dodge Durango SRT Hellcat, to market in the fourth quarter.

This is a critical differentiation for us.

Our great commercial vehicle products represent roughly 30% of all our revenues in aggregate across the regions.

Speaker #3: I believe there is a strong cross-industry consensus that the rules need to change and change quickly . Last quarter highlighted six near term opportunities .

Europe, where we are number one in commercial vehicles with a solid 28% share we.

We are expanding our in house customization options.

In South America. We are also number one in commercial vehicle with a 31% share.

Speaker #3: We had to improve profitability spend in new products , changes for the new model year , vehicles and improved manufacturing and operational efficiencies .

Antonio Filosa: In South America, we are also number 1 in commercial vehicle with a 31% share. We are expanding how we cover the midsize pickup segment with the new launched Ram Dakota. In Middle East and Africa, where we have a 20% share, we are launching local production of Compact Fiat vans in Algeria, a market where we have especially strong share leadership. In North America, where we have 12% share, we have returned the Ram 1500 HEMI to the lineup, with more product actions to come. Now let me touch briefly on a topic where we had some exciting announcements recently. We are excited to, by the way, as technology and other dynamics are evolving, to bring robotaxis closer to commercial viability. We have announced a new collaboration with incredible partners.

We are expanding our we call that the midsize pickup segment with the new launches ramp Dakota.

And in Middle Eastern Africa.

Speaker #3: And I'm happy to report we are making good progress. The return of the V8 to the Ram 1500 light-duty trucks in the third quarter has delighted many of our customers.

Well, we have a 20% share.

We are launching a local production of compact fee advance in Algeria.

A market, where we have a specially strong share leadership.

In North America, where we're 12% share.

Speaker #3: Next SRT , we will bring an initial SRT model , the Dodge Durango SRT Hellcat , to market in the fourth quarter . This will be the first of several SRT products that we will launch in the coming years , and we pointed to the ramping up of the four smart car platform products in Europe .

We have returned any of the Ram 1500, Ami to the lineup.

With more product actions to come.

Now, let me touch briefly on a topic, where we add the some exciting announcements recently.

Antonio Filosa: This will be the first of several SRT products that we will launch in the coming years, and we pointed to the ramping up of the four smart car platform products. In Europe in the third quarter, we increased production by 57,000 units year over year, which is exciting because we have approximately 120,000 orders for these vehicles in our order book. Next, I want to recognize our global Pro One commercial vehicle organization. This is a critical differentiator for us. Our grid commercial vehicle products represent roughly 30% of our revenues in aggregate across the regions. In Europe, where we are number one in commercial vehicles with a solid 28% share, we are expanding our in-house customization options. In South America, we are also number one in commercial vehicles with a 31% share.

We are excited to buy the waste technology and other dynamics that are holding to bring a robo taxis closer to commercial viability.

Speaker #3: In the third quarter, we increased production by 57,000 units year over year, which is exciting because we have approximately 120,000 orders for these vehicles.

And we have announced a new collaboration with incredible partners.

First in October.

Antonio Filosa: First, in October, we announced plans for Pony.ai to adopt our fully electric LCV and jointly develop a program to launch a large robotaxi people mover. First prototype vehicles have already begun testing in Luxembourg. Just this week, we announced a collaboration with NVIDIA, Uber, and Foxconn to build fleets of robotaxi based on our AV-ready platforms, LCV, and STLA Small, targeting US cities as first. We are extremely proud of the fact these outstanding partners recognize the advanced capabilities built into our platforms and are convinced we can deliver substantial value in the emerging robotaxi market and space. Now let's turn to our exciting investment news. Since I took the CEO role, I made clear inside and outside the company that the US is a key priority for our success.

We announced that plans for Bonnie AI to adopt our fully electric LCB and jointly develop a program to launch a large robo taxi people mover.

Speaker #3: In our order book . Next , I want to recognize our global Pro one commercial vehicle organization . This is a critical differentiation for us .

First prototype vehicles have already begun testing in Luxembourg.

And then just this week, we announced the collaboration with our media Uva and Fox home too.

Speaker #3: Our great commercial vehicle products represent roughly 30% of our revenues in aggregate across the regions in Europe where we are number one in commercial vehicles with a solid 28% share .

To build a fleet so ROE taxi based on our E V radio platforms.

L C V Astellas mall targeting U S U S cities as first.

Speaker #3: We are expanding our in-house customization options in South America . We are also number one in commercial vehicle with a 31% share . We are expanding how we cover the mid-size pickup segment with the new launched Ram Dakota , and in Middle East and Africa , where we have a 20% share .

We are extremely proud of the fact that these outstanding partners recognize the advance of the capabilities built into our platforms and I'm convinced that we can deliver substantial value in the emerging robot taxi market and space.

Antonio Filosa: We are expanding how we cover the midsize pickup segment with the newly launched Ram Dakota, and in Middle East and Africa, where we have a 20% share, we are launching local production of compact Fiat vans in Algeria, a market where we have especially strong share leadership. In North America, where we have 12% share, we have returned the Ram 1500 Hemi to the lineup with more product actions to come. Now let me touch briefly on a topic where we had some exciting announcements recently. We are excited by the way technology and other dynamics are evolving to bring robotaxis closer to commercial viability, and we have announced a new collaboration with incredible partners. First, in October we announced plans for Pony.ai to adopt our fully electric LCV and jointly develop a program to launch a large robotaxi people mover.

Yeah.

Speaker #3: We are launching local production of compact Fiat vans in Algeria, a market where we have a strong shared leadership in North America, where we have a 12% share.

Now, let's turn to our exciting invest menus.

Since I took the CEO role I made clear inside and outside the company that the U S is a key priority for our success.

Speaker #3: We have returned the Ram 1500 to the lineup with more product actions to come . Now let me touch briefly on a topic where we had some exciting announcements recently .

Because when we are strong in the U S. We are stronger and better as a company everywhere.

Antonio Filosa: Because when we are strong in the US, we are stronger and better as a company everywhere. The $13 billion we will invest in the US in the next 4 years is an investment in growth. This is the largest single investment in our history and a proud commitment to our US people, plants, products, and communities. This investment will support the introduction of 5 all-new vehicles to US plants and, critically, increase the level of US production by 50%. I want here to recognize the administrations for their important focus on making pragmatic changes to regulations and tariffs. This is truly making the difference. Let's look more closely at how this investment enlarges a lot of opportunities for us. First, Jeep. Jeep is showing gradual improvement in the US in 2025, with Q3 sales growth of 11%, nearly double the US market's growth of 6%.

The $13 billion, we will invest in U S. In the next four years is an investment in growth.

Speaker #3: We are excited by how waste technology and other dynamics are evolving to bring robotaxis closer to commercial viability. We have announced a new collaboration with incredible partners.

This is the largest single investment in our <unk> study and they're proud commitment to our U S people plans products and communities.

Speaker #3: First , in October , we announced plans for Pony.ai to adopt our fully electric LCV and jointly develop a program to launch a large robotaxi .

This investment will support the introduction of five all new vehicles through U S plants and critically increase the level of U S production by 50%.

Speaker #3: People mover . First , prototype vehicles have already begun testing in Luxembourg and then just this week , we announced that collaboration with Nvidia , Uber and Foxconn to build fleets of our taxi based on our everyday platforms LCV and small targeting us US cities as first , we are extremely proud of the fact that these outstanding partners recognize the advanced capabilities built into our platforms and unconvinced we can deliver substantial value in the emerging robotaxi market and space .

I want to recognize the administrations for their important focus on making the pragmatic changes to regulations and tariffs.

Antonio Filosa: First prototype vehicles have already begun testing in Luxembourg, and just this week we announced our collaboration with Nvidia, Uber, and Foxconn to build fleet solo taxi based on our AV-ready platforms LCV and Stella Small. Targeting U.S. cities as first, we are extremely proud of the fact that these outstanding partners recognize the advanced capabilities built into our platforms, and I'm convinced we can deliver substantial value in the emerging robotaxi market. Now let's turn to our exciting investment news. Since I took the CEO role, I made clear inside and outside the company that the U.S. is a key priority for our success because when we are strong in the U.S., we are stronger and better as a company everywhere. The $13 billion we will invest in the U.S. in the next four years is an investment in growth.

This is truly making a difference.

So let's look more closely at how this investment a lot it's a lot opportunities for us.

Perth Jeep.

ZIP is showing gradual improvement in the U S in 2025.

With quarter three sales growth of 11%.

Normally double the U S market growth of 6%.

We also have an exciting quarter for planet with all new Cherokee and refreshed Grand Cherokee and Grand Wagoneer.

Antonio Filosa: We also have an exciting Q4 planned with all-new Jeep Cherokee and refreshed Jeep Grand Cherokee and Jeep Grand Wagoneer. To build on that momentum, the new US investment includes plans to manufacture Jeep Compass and Jeep Cherokee in our Belvidere plant. This is critical to our strong offensive in the sub-$40,000 US dollar market. We are also investing to bring new technologies and other strong product actions to the iconic Jeep Wrangler and Jeep Gladiator. Our ability to serve the midsize SUV segment, the largest in the US car market at 20% of total industry volumes, is extended in a powerful way with Jeep Cherokee and the very unique trail-rated Jeep Recon, which arrives in 2026. Overall, we are substantially stepping up our market coverage. The lineup is incredibly fresh and exciting, and our manufacturing sites will be ready to support higher demand. Now Ram.

Speaker #3: Now , let's turn to our exciting investment news . Since I took the CEO role , I made clear inside and outside the company that the US is a key priority for our success .

To build on that momentum with the new U S investment includes plans.

Two manufacturer Jeep Compass, and Jeep Cherokee in our Belvidere plant.

This is critical to our strong offensive in the sub 40, K U S dollar market.

Speaker #3: Because when we are strong in the US , we are stronger and better as a company . Everywhere . The $13 billion we will invest in us in the next four years is an investment in growth .

We are also investing to bring the new technologies and other strong product actions the economy, Jeep Wrangler and Jeep Gladiator.

Speaker #3: This is the largest single investment in our history and a proud commitment to our US people , plants , products and communities . This investment will support the introduction of five all new vehicles to US plants and critically increase the level of US production by 50% .

Antonio Filosa: This is the largest single investment in our history and a proud commitment to our U.S. people, plants, products, and communities. This investment will support the introduction of five all-new vehicles to U.S. plants and critically increase the level of U.S. production by 50%. I want here to recognize the administrations for their important focus on making pragmatic changes to regulations and tariffs. This is truly making the difference. Let's look more closely at how this investment enlarges a lot of opportunities for us. First, Jeep is showing gradual improvement in the U.S. in 2025 with Q3 sales growth of 11%, nearly double the U.S. market's growth of 6%. We also have an exciting Q4 planned with all-new Cherokee and refreshed Grand Cherokee and Grand Wagoneer. To build on that momentum, the new U.S. investment includes plans to manufacture Jeep Compass and Jeep Cherokee in our Belvidere plant.

Our ability to sell with the midsize SUV segment, the largest in the U S car market at 20% of total industry volumes.

Is extended in a powerful way with Jeep Cherokee.

And the really unique trade redid recon, which arrived in 2026.

Overall, we are substantially stepping up our market coverage.

Speaker #3: I want here to recognize the administration's for their important focus on making pragmatic changes to regulations and tariffs . This is truly making the difference .

The lineup is in incredibly fresh and exciting.

And our manufacturing sites will be ready to support our demand.

Speaker #3: So let's look more closely at how these investment enlarge a lot . Opportunities for us . First , Jeep . Jeep is showing gradual improvement in us in 2025 with quarter three sales growth of 11% , nearly double the US market growth of 6% .

No Ron.

I've spoken already about the strong product actions at run in 2025.

Antonio Filosa: I spoken already about the strong product actions at Ram in 2025, which have helped us drive year-to-date retail sales 26% higher than last year. Now, with the US investment, we are opening up additional growth. First, we are putting in place a much more comprehensive product range. We have now set the plan to return Ram by 2028 to both the mid-size truck and large SUV segment. Tegon. We are leading on innovation. With this new large SUV, the Ram lineup will include two models alongside the Ram 1500 REV, both set to feature our unique and very innovative range-standard powertrain. Lastly, Ram will be showing even more of its trademark passion, with two new SRT performance products to be revealed in the coming months, each with utterly distinct value propositions. We are building the most comprehensive, the most innovative, the most passionate Ram ever.

Which have helped.

US drive year to date retail sales, 26% a year than last year.

Now with the U S investment.

We are opening up additional growth.

We are putting in place a much more comprehensive product range.

Speaker #3: We also have an exciting quarter for planet with all new Cherokee and refreshed Grand Cherokee and Grand Wagoneer to build on that momentum .

We have now set the plan to return Ryan by 2028 to buffer the midsize truck and largest UV segment.

Speaker #3: The new U.S. investment includes plans to manufacture the Jeep Compass and Jeep Cherokee in our Belvidere plant. This is critical to our strong offensive in the sub-$1 million market.

Second.

We are leading on innovation.

With these new large SUV the.

The Rem lineup will include the two models a longtime the Ram 1500 R E D.

Antonio Filosa: This is critical to our strong offensive in the sub-$40,000 USD market. We are also investing to bring new technologies and other strong product actions to the iconic Jeep Wrangler and Jeep Gladiator. Our ability to serve the midsize SUV segment, the largest in the U.S. car market at 20% of total industry volumes, is extended in a powerful way with Jeep Cherokee and the very unique trail-rated Recon, which arrives in 2026. Overall, we are substantially stepping up our market coverage. The lineup is incredibly fresh and exciting, and our manufacturing sites will be ready to support higher demand. Now Ram, I've spoken already about the strong product actions at Ram in 2025, which have helped us drive year-to-date retail sales 26% higher than last year. Now, with the U.S. investment, we are opening up additional growth. First, we are putting in place a much more comprehensive product range.

Both set to future our unique and very innovative Ranger standard powertrain.

Speaker #3: We are also investing to bring new technologies and other strong product actions to the Jeep Wrangler and Jeep Gladiator . Our ability to serve the mid-size SUV segment , the largest in the US car market at 20% of total industry volumes , is extended in a powerful way with Jeep Cherokee and the very unique trail rated recon , which arrives in 2026 .

Lastly.

Graham will is showing even more of its trademark of passion.

With two new SSD performance products to be revealed in the coming months itch with utterly distinct value propositions.

We are building the most comprehensive the most innovative the most passionate ramp ever.

Speaker #3: Overall , we are substantially stepping up our market coverage . The line up is incredibly fresh and exciting , and our manufacturing sites will be ready to support higher demand .

Now over to Joel who will take you through the numbers for the quarter.

Antonio Filosa: Now over to João, who will take you through the numbers for the quarter. Thank you for now.

Thank you for now.

Thank you Anthony.

They're new and good morning, everyone. It's my pleasure to be speaking to you for the first time as it's the launches new CFO.

Ed Ditmire: Thank you, Antonio. Good afternoon and good morning, everyone. It's my pleasure to be speaking to you for the first time as Stellantis' new CFO. Let's start with the top-line figures. In Q3 2025, Stellantis saw a return to year-over-year top-line growth. This ended a tough period of 7 quarters of year-over-year declines. Consolidated shipments of 1.3 million units were up 13%, or 152,000 units. Most of the increase came from a 35% improvement in North America. That increase mainly reflects the benefits of normalized inventory dynamics. To elaborate, the prior year's shipments were heavily impacted by H2 2024's US dealer inventory reduction actions, which entailed substantial factory downtime. Net revenues of EUR 37.2 billion were also up 13% compared to Q3 2024. That was driven by increases in North America, Europe, and Middle East and Africa.

João Laranjo: Thank you, Antonio. Good afternoon and good morning, everyone. It's my pleasure to be speaking to you for the first time as Stellantis' new CFO. Let's start with the top-line figures. In Q3 2025, Stellantis saw a return to year-over-year top-line growth. This ended a tough period of 7 quarters of year-over-year declines. Consolidated shipments of 1.3 million units were up 13%, or 152,000 units. Most of the increase came from a 35% improvement in North America. That increase mainly reflects the benefits of normalized inventory dynamics. To elaborate, the prior year's shipments were heavily impacted by H2 2024's US dealer inventory reduction actions, which entailed substantial factory downtime. Net revenues of EUR 37.2 billion were also up 13% compared to Q3 2024. That was driven by increases in North America, Europe, and Middle East and Africa.

Speaker #3: Now , Ram , I spoken already about the strong product actions at Ram in 2025 , which have helped us drive year to date retail sales 26% higher than last year .

So, let's just start with the top line figures.

In the third quarter of 2025 is the loan to saw a return to year over year top line growth.

Speaker #3: Now , with the US investment , we are opening up additional growth . First , we are putting in place a much more comprehensive product range .

This ended a tough theater dose seven quarters of year over year declines.

Solid data shipments of one 3 million units were up 13% or 152000 units.

Speaker #3: We are now set the plan to return Ram by 2028 to both the midsize truck and large SUV segment . Second , we are leading on innovation with this new large SUV , the Ram lineup will include two models alongside Ram 1500 Rev .

Antonio Filosa: We have now set the plan to return Ram by 2028 to both the mid-size truck and large SUV segment. Second, we are leading on innovation with this new large SUV. The Ram lineup will include two models alongside the Ram 1500 Rev, both set to feature our unique and very innovative Ranger Standard powertrain. Lastly, Ram will be showing even more of its trademark passion with two new SRT performance products to be revealed in the coming months, each with utterly distinct value propositions. We are building the most comprehensive, the most innovative, the most passionate Ram ever. Now over to Joao, who will take you through the numbers for the quarter. Thank you for now.

Most of the increase came from around 35% improvement in off on mask that increase mainly reflect the benefits of normalized inventory dynamics.

Elaborate the prior year's shipments were heavily impacted by the second half of 2020 fours U S dealer inventory reduction actions, which entail substantial factory downtime.

Speaker #3: Both set to feature our unique and very innovative range . Standard powertrain . Lastly , Ram will be even more of its trademark passion with two new SRT performance products to be revealed in the coming months , each with utterly distinct value propositions .

Net revenues of $37 2 billion euros were also up 13% compared to the third quarter of 2020 for.

That was driven by increases in North America, Europe, and Middle East in Africa.

Speaker #3: We are building the most comprehensive , the most innovative , the most passionate Ram ever . Now over to Joel , who will take you through the numbers for the quarter .

Let's turn to the revenue bridge to understand that 13% revenue increase in more detail.

Ed Ditmire: Let's turn to the revenue bridge to understand the 13% revenue increase in more detail. The improvement was driven mainly by the volume increase in North America and Europe. The 13% revenue increase year-over-year was driven mainly by the 13% volume increase. Other factors, including positive mix and pricing, were offset by FX headwinds. On volumes, in addition to the improvement of 104,000 units reported by North America, we also saw a net total 48,000 units increase from the other regions, with positive contributions in Europe, Middle East and Africa, partially offset by a moderate decline in South America. Next, pricing was up 2% compared to Q3 last year. This was driven by gains in North America, where a roughly 4% increase reflects a low prior-year comparison point when higher incentives to clear aged inventory were in place.

João Laranjo: Let's turn to the revenue bridge to understand the 13% revenue increase in more detail. The improvement was driven mainly by the volume increase in North America and Europe. The 13% revenue increase year-over-year was driven mainly by the 13% volume increase. Other factors, including positive mix and pricing, were offset by FX headwinds. On volumes, in addition to the improvement of 104,000 units reported by North America, we also saw a net total 48,000 units increase from the other regions, with positive contributions in Europe, Middle East and Africa, partially offset by a moderate decline in South America. Next, pricing was up 2% compared to Q3 last year. This was driven by gains in North America, where a roughly 4% increase reflects a low prior-year comparison point when higher incentives to clear aged inventory were in place.

The improvement was driven mainly by the volume increase in North America and Europe.

Speaker #3: Thank you for now .

Speaker #2: Thank you .

The 13% revenue increase year over year.

Joao Larango: Thank you, Antonio. Good afternoon and good morning, everyone. It's my pleasure to be speaking to you for the first time as Stellantis N.V. new CFO. Let's start with the top line figures. In the third quarter of 2025, Stellantis N.V. saw a return to year-over-year top line growth. This ended a tough period of seven quarters of year-over-year declines. Consolidated achievements of 1.3 million units were up 13%, or 152,000 units. Most of the increase came from a 35% improvement in North America. That increase mainly reflects the benefits of normalized inventory dynamics. To elaborate, the prior year shipments were heavily impacted by the second half of 2024's U.S. dealer inventory reduction actions, which entailed substantial factory downtime. Net revenues of €37.2 billion were also up 13% compared to the third quarter of 2024. That was driven by increases in North America, Europe, and Middle East and Africa.

Speaker #4: Antonio. Good afternoon and good morning, everyone. It's my pleasure to be speaking to you for the first time as I launch into my role as the new CFO.

Was driven mainly by the 13% volume increase.

Other factors, including positive mix and pricing were offset by FX headwinds.

Speaker #4: So let's start with the top line figures . In the third quarter of 2025 . Is the launch saw a return to year over year top line growth .

Volumes. In addition to the improvement of 104000 units reported by North America.

We also saw a net total of 48000 units increase from the or the regions with positive contributions in Europe, and middle Eastern Africa, partially offset by a moderate decline in South America.

Speaker #4: This ended at period of seven quarters of year over year declines . Consolidated shipments of 1.3 million units were up 13% , or 152,000 units .

<unk> pricing was up 2% compared to the third quarter last year.

Speaker #4: Most of the increase came from a 35% improvement in North America. That increase mainly reflects the benefits of normalized inventory dynamics. To elaborate, in the prior year, shipments were heavily impacted by the second half of 2020.

This was driven by gains in North America, where of roughly 4% increase reflect a low prior year comparison point when higher incentives to clear aged inventory who are in place. We are also benefiting in 2025 currently strong inventory discipline.

Speaker #4: For US dealer inventory reduction actions , which entailed substantial factory downtime , net revenues of €37.2 billion were also up 13% compared to the third quarter of 2020 .

Ed Ditmire: We are also benefiting in 2025 from strong inventory discipline. We continue to see ongoing pricing headwinds in Europe but positive pricing dynamics in South America and Middle East and Africa. Effects remained a material headwind in Q3, with EUR 1.7 billion negative impact at the group level. This reflects the devaluation of the U.S. dollar, Turkish lira, and Brazilian real versus the euro. The U.S. dollar impact was by far the largest part of this. Let's move to our regional segments. Q3 saw year-over-year volume and net revenue improvements in North America, Europe, and the Middle East and Africa. Jeep Wrangler and Ram light-duty nameplates, in particular, drove volume improvement for North America. Europe saw the ongoing ramp-up of European Smart Car products versus Q2 2025, which helped sales.

João Laranjo: We are also benefiting in 2025 from strong inventory discipline. We continue to see ongoing pricing headwinds in Europe but positive pricing dynamics in South America and Middle East and Africa. Effects remained a material headwind in Q3, with EUR 1.7 billion negative impact at the group level. This reflects the devaluation of the U.S. dollar, Turkish lira, and Brazilian real versus the euro. The U.S. dollar impact was by far the largest part of this. Let's move to our regional segments. Q3 saw year-over-year volume and net revenue improvements in North America, Europe, and the Middle East and Africa. Jeep Wrangler and Ram light-duty nameplates, in particular, drove volume improvement for North America. Europe saw the ongoing ramp-up of European Smart Car products versus Q2 2025, which helped sales.

We continue to see ongoing pricing headwinds in Europe, but positive pricing dynamics in South America and Middle Eastern Africa.

FX remained a material headwind in the third quarter.

Speaker #4: For that was driven by increases in North America , Europe and Middle East and Africa . Let's turn to the revenue bridge to understand the 13% revenue increase in more detail .

With $1 7 billion euros negative impact at the group level.

Joao Larango: Let's turn to the revenue bridge to understand the 13% revenue increase in more detail. The improvement was driven mainly by the volume increase in North America and Europe. The 13% revenue increase year-over-year was driven mainly by the 13% volume increase. Other factors, including positive mix and pricing, were offset by FX headwinds on volumes. In addition to the improvement of 104,000 units reported by North America, we also saw a net total 48,000 units increase from the other regions, with positive contributions in Europe and Middle East and Africa, partially offset by a moderate decline in South America. Next, pricing was up 2% compared to the third quarter last year. This was driven by gains in North America, where a roughly 4% increase reflects a low prior year comparison point when higher incentives to clear aged inventory were in place.

This reflects the devaluation of the U S dollar Turkish lira in Brazilian real versus the euro.

Speaker #4: The improvement was driven mainly by the volume increase in North America and Europe . The 13% revenue increase year over year was driven mainly by the 13% volume increase .

The U S dollar impact was by far the largest part of this.

Now, let's move to our regional segments there.

The third quarter saw year over year volume and net revenue improvements in North America, Europe, and the Middle East and Africa.

Speaker #4: Other factors , including positive mix and pricing , were offset by effects , headwinds on volumes . In addition to the improvement of 104,000 units reported by North America , we also saw a net total 48,000 units increase from the other regions with positive contributions in Europe and Middle East and Africa , partially offset by a moderate decline in South America .

Jeep Wrangler and Ram light duty nameplates in particular drove volume improvement for North America.

Europe saw the ongoing ramp up of European is smart card products that second quarter of 2025, which helped sales at the same time, we are seeing generally subdued registration volumes in Europe year to date.

Ed Ditmire: At the same time, we are seeing generally subdued registration volumes in Europe year to date. Middle East and Africa had a strong shipment increase of 21%, driven mostly by higher volumes in Algeria, where the company has significantly raised its local production. South America revenue was down 5%. This is in part due to tough comps compared to Q3 2024, when Stellantis benefited from a recovery in Brazilian shipments that had been delayed by the Q2 2024 flood in Rio Grande do Sul. Turning now to inventories. Stock levels remained well-managed at the end of Q3 2025. Total inventories rose 4% sequentially compared to the end of Q2. That is primarily due to higher stock in North America, mainly to the ramp-up of Hemi V8 Ram 1500. US

João Laranjo: At the same time, we are seeing generally subdued registration volumes in Europe year to date. Middle East and Africa had a strong shipment increase of 21%, driven mostly by higher volumes in Algeria, where the company has significantly raised its local production. South America revenue was down 5%. This is in part due to tough comps compared to Q3 2024, when Stellantis benefited from a recovery in Brazilian shipments that had been delayed by the Q2 2024 flood in Rio Grande do Sul. Turning now to inventories. Stock levels remained well-managed at the end of Q3 2025. Total inventories rose 4% sequentially compared to the end of Q2. That is primarily due to higher stock in North America, mainly to the ramp-up of Hemi V8 Ram 1500. US

Speaker #4: Next , pricing was up 2% compared to the third quarter last year . This was driven by gains in North America , where roughly 4% increase .

Middle East and Africa had a strong shipment increase of 21%.

Driven mostly by higher volumes in Algeria, where the company has significantly grazed each local production.

Speaker #4: Reflects a low prior year comparison point when higher incentives to clear aged inventory were in place. We are also benefiting in 2025 from strong inventory discipline.

South America revenue was down 5% this and in part due to tough comps compared to the third quarter of 2024.

Joao Larango: We are also benefiting in 2025 from strong inventory discipline. We continue to see ongoing pricing headwinds in Europe, but positive pricing dynamics in South America and Middle East and Africa. FX remained a material headwind in the third quarter, with €1.7 billion negative impact at the group level. This reflects the devaluation of the U.S. Dollar, Turkish Lira, and Brazilian Real versus the Euro. The U.S. Dollar impact was by far the largest part of this. Now let's move to our regional segments. The third quarter saw year-over-year volume and net revenue improvements in North America, Europe, and the Middle East and Africa. Jeep Wrangler and Ram light duty nameplates in particular drove volume improvement for North America. Europe saw the ongoing ramp up of European smart car products in the second quarter of 2025, which helped sales.

When Easter lunch benefits from that recovery in Brazilian shipments that had been delayed by the second quarter of 2020 for flood Eto granted assume.

Speaker #4: We continue to see ongoing pricing headwinds in Europe , but positive pricing dynamics in South America and Middle East and Africa effects remained a material headwind in the third quarter , with €1.7 billion negative impact at the group level .

Turning now to events ours in stock levels remained well managed at the end of the third quarter of 2025.

Total inventories rose 4% sequential.

Speaker #4: This reflects the devaluation of the US dollar , Turkish lira and Brazilian real versus the euro . The US dollar impact was by far the largest part of this .

Compared to the end of the second quarter that is primarily due to higher stock in North America, mainly to the ramp up of Hany V. Eight around 1500.

Speaker #4: Now let's move to our regional segments . The third quarter saw year over year volume and net revenue improvements in North America , Europe and the Middle East and Africa .

U S dealer inventory days of say remained the mid sixties, consistent where with where we ended 2024.

Ed Ditmire: dealer inventory days of sale remained in the mid-60s, consistent with where we ended 2024. Moving forward, we expect to continue to see some absolute increase sequentially at the group level as we continue expanding the product lineup in the market, while the relationship to sales will remain relatively stable. Let me end this section with our 2025 guidance, which we are confirming in all respects. We expect the second half of 2025 to continue the Q3's return to year-over-year growth and to be above first half 2025 levels. Stronger volumes and their contribution to improved industrial efficiency will put us in position to deliver low single-digit adjusted operating income margin in the second half, and we are working to deliver sequentially improved industrial free cash flow.

João Laranjo: dealer inventory days of sale remained in the mid-60s, consistent with where we ended 2024. Moving forward, we expect to continue to see some absolute increase sequentially at the group level as we continue expanding the product lineup in the market, while the relationship to sales will remain relatively stable. Let me end this section with our 2025 guidance, which we are confirming in all respects. We expect the second half of 2025 to continue the Q3's return to year-over-year growth and to be above first half 2025 levels. Stronger volumes and their contribution to improved industrial efficiency will put us in position to deliver low single-digit adjusted operating income margin in the second half, and we are working to deliver sequentially improved industrial free cash flow.

Moving forward, we expect to continue to see some absolute increase sequentially at the group level as we continue expanding the product line up in the market.

Speaker #4: Jeep Wrangler and Ram light duty nameplates in particular , drove volume improvement for North America . Europe saw the ongoing ramp up of European .

While the relationship just saves will remain relatively stable.

Speaker #4: Smart car products in the second quarter of 2025 helped sales; at the same time, we are seeing generally subdued registration volumes in Europe year to date.

Let me end this section with our 2025 guidance, which we are confirming in all respects.

Joao Larango: At the same time, we are seeing generally subdued registration volumes in Europe. Year to date, Middle East and Africa had a strong shipment increase of 21%, driven mostly by higher volumes in Algeria where the company has significantly raised its local production. South America revenue was down 5%. This is in part due to tough comps compared to the third quarter of 2024 when Stellantis N.V. benefited from a recovery in Brazilian shipments that had been delayed by the second quarter of 2024 flood in Rio Grande do Sul. Turning now to inventories, stock levels remain well managed. At the end of the third quarter of 2025, total inventories rose 4% sequentially compared to the end of the second quarter. That is primarily due to higher stock in North America, mainly due to the ramp up of Ram 1500 Hemi V8. U.S.

We expect the second half 2025 to continue the third quarters return to year over year growth and should be above first half 2025 levels.

Speaker #4: Middle East and Africa had a strong shipment increase of 21% , driven mostly by higher volumes in Algeria , where the company has significantly raised its local production , South America revenue was down 5% .

The stronger volumes and their contribution to improved industrial efficiency.

It will put us in position to deliver low single Joost adjusted operating income margin in the second half.

Speaker #4: This is in part due to tough comps compared to the third quarter of 2020 . For when Stellantis benefited from a recovery in Brazilian shipments that had been delayed by the second quarter of 2024 .

And we are working to deliver sequentially improved industrial free cash flow.

Please note also.

We have refined our projection for net tariff expenses for 2025, now approximately 1 billion euros compared to the prior one 5 billion years.

Ed Ditmire: Please note also we have refined our projection for net tariff expenses for 2025, now approximately 1 billion euros compared to the prior 1.5 billion euros. There are a few other things I'd like to touch on, which, while they are currently expected to have limited impact on the aforementioned second half guidance metrics, will likely affect other aspects of our second half financial results. First, as we indicated in July, we are engaged in the ongoing process of reviewing all aspects of the business as part of updating our strategic plan. This will likely lead to further charges in the second half. We expect that a large portion of the charges will be excluded from AOI to the extent that they are not indicative of our ongoing operations. Second, we are in the process of updating how we estimate warranty costs.

João Laranjo: Please note also we have refined our projection for net tariff expenses for 2025, now approximately 1 billion euros compared to the prior 1.5 billion euros. There are a few other things I'd like to touch on, which, while they are currently expected to have limited impact on the aforementioned second half guidance metrics, will likely affect other aspects of our second half financial results. First, as we indicated in July, we are engaged in the ongoing process of reviewing all aspects of the business as part of updating our strategic plan. This will likely lead to further charges in the second half. We expect that a large portion of the charges will be excluded from AOI to the extent that they are not indicative of our ongoing operations. Second, we are in the process of updating how we estimate warranty costs.

Speaker #4: Flood in Rio Grande do Sul . Turning now to inventories , stock levels remained well managed at the end of the third quarter of 2025 , total inventories rose 4% sequentially compared to the end of the second quarter .

There's a few other things I'd like to touch on which while they're currently expect to have limited impact on therefore, our nation second half guidance matrix will likely affect are there aspects of our second half financial results.

Speaker #4: That is primarily due to higher stocking of America , mainly to the ramp up of Hemi V8 , Ram 1500 US dealer inventory .

As we indicated in July.

Joao Larango: dealer inventory days of sale remained in the mid-60s, consistent with where we ended 2024. Moving forward, we expect to continue to see some absolute increase sequentially at the group level as we continue expanding the product lineup in the market, while the relationship to sales will remain relatively stable. Let me end this section with our 2025 guidance, which we are confirming. We expect the second half of 2025 to continue the third quarter's return to year over year growth and to be above first half 2025 levels. Stronger volumes and their contribution to improved industrial efficiency will put us in position to deliver low single digit adjusted operating income margin in the second half, and we are working to deliver sequentially improved industrial free cash flow.

Speaker #4: Days of sale remained in the mid-60s, consistent with where we ended 2024. Moving forward, we expect to continue to see some absolute increase at the group level as we continue expanding the product lineup in the market.

We are engaged in the ongoing process of reviewing all aspects of the business as part of updating our strategic plan.

This will likely lead to further chargers in the second half.

We expect that a large portion of the Chargers will be excluded from AOI should extend that they are not indicative of our ongoing operations.

Speaker #4: While the relationship to sales will remain relatively stable, let me end this section with our 2025 guidance, which we are confirming in our respects.

Second we are in the process of updating how we estimate warranty costs. Our historical model was in line with industry practice and worked well. However in recent periods, we've experienced cost inflation. While this change in estimate does not change that.

Speaker #4: We expect the second half , 2025 to continue the third quarter return to year over year growth and to be above first half 2025 levels .

Ed Ditmire: Our historical model was in line with industry practice and worked well. However, in recent periods, we've experienced cost inflation. While this change in estimate does not change the actual cash costs or their time, it is likely to result in a one-time charge, which would increase the level of balance sheet reserves. It is not expected to materially impact future period profitability compared to the 2025 run rate. Now I'll hand the call back to Antonio for some closing remarks.

João Laranjo: Our historical model was in line with industry practice and worked well. However, in recent periods, we've experienced cost inflation. While this change in estimate does not change the actual cash costs or their time, it is likely to result in a one-time charge, which would increase the level of balance sheet reserves. It is not expected to materially impact future period profitability compared to the 2025 run rate. Now I'll hand the call back to Antonio for some closing remarks.

Speaker #4: Stronger volumes and their contribution to improved industrial efficiency will put us in position to deliver low single digit adjusted operating income margin in the second half , and we are working to deliver sequentially improved industrial free cash flow .

Actual cash costs are their time.

Is likely to result in a onetime charge, which would increase the level of balance sheet reserves. It is not expected to materially impact future period profitability compare to the 2025 run rate.

Speaker #4: Please note also , we have refined our projection for net tariff expenses for 2025 . Now approximately €1 billion compared to the prior €1.5 billion .

Joao Larango: Please note also we have refined our projection for net tariff expenses for 2025, now approximately €1 billion compared to the prior €1.5 billion. There are a few other things I'd like to touch on, which, while they are currently expected to have limited impact on the aforementioned second half guidance metrics, will likely affect other aspects of our second half financial results. First, as we indicated in July, we are engaged in the ongoing process of reviewing all aspects of the business as part of updating our strategic plan. This will likely lead to further charges in the second half. We expect that a large portion of the charges will be excluded from AOI to the extent that they are not indicative of our ongoing operations. Second, we are in the process of updating how we estimate warranty costs.

Now I'll hand, the call back to Antonio for some closing remarks.

Thank you Joel.

Before opening to your question. So let me recap the key points from today's presentation.

Antonio Filosa: Thank you, João. Before opening to your questions, let me recap the key points from today's presentation. The Q3 revenue and shipment performances give an early signal that our actions are beginning to have a positive impact. You can see that in Q3, we continued and accelerated the actions we started in January to correct past strategic and operational decisions. We quickly changed our organizational structure to restore proximity to our customers, dealers, and suppliers. We reconnected with our governments and regulators, and we took important decisions, such as the product actions and major investments we discussed today, that have restored the freedom to choose to the very heart of our strategy. Lastly, confirming our second half guidance signals our belief in further steady, sequential progress quarter by quarter.

Speaker #4: There are a few other things I'd like to touch on which , while they are current , expect to have limited impact on the aforementioned second half guidance , metrics will likely affect other aspects of our second half financial results .

The third quarter revenue and shipments performances, given notably China that our actions are beginning to have a positive impact.

You can see that in quarter three we continued that accelerated the.

Speaker #4: First , as we indicated in July , we are engaged in the ongoing process of reviewing all aspects of the business as part of updating our strategic plan .

The actions we started in January.

To correct past strategic and operational decisions.

We quickly changed our organizational structure to restore proximity to our customers dealers and suppliers.

Speaker #4: This will likely lead to further charges in the second half . We expect that a large portion of the charges will be excluded from A.y to the extent that they are not indicative of ongoing operations .

We reconnected with our governments and regulators.

And we took important decisions.

Such as the product actions and the major investments we discuss it Lee.

That they have restored the freedom to choose to the very heart of our strategy.

Speaker #4: Second , we are in the process of updating how we estimate warranty costs . Our historical model was in line with industry practice and worked well .

And lastly.

Joao Larango: Our historical model was in line with industry precedents and worked well. However, in recent periods we've experienced cost inflation. While this change in estimate does not change the actual cash costs or their timing, it is likely to result in a one-time charge which would increase the level of balance sheet reserves. It is not expected to materially impact future period profitability compared to the 2025 run rate. Now I'll hand the call back to Antonio for some closing remarks.

Confirming our second half guidance finally, els our belief in Florida.

Speaker #4: However , in recent periods we've experienced cost inflation . While this change in estimate does not change the actual cash costs or their time , it is likely to result in a one time charge , which would increase the level of balance sheet reserves .

Sadie sequential progress quarter by quarter.

That concludes our opening remarks, and so I would like to ask our operator to open the line for your questions. Thank you.

Antonio Filosa: That concludes our opening remarks. I would like to ask our operator to open the line for your questions. Thank you.

Thank you as a reminder to ask a question. Please type pound key five on your telephone keypad.

Operator: Thank you. As a reminder to ask a question, please type pound key 5 on your telephone keypad. The next question comes from Jose Asumendi from J.P. Morgan. Please go ahead.

Speaker #4: It is not expected to materially impact future period profitability compared to the 2025 run rate. Now, I'll hand the call back to Antonio for some closing remarks.

The next question comes from Jose Awesome, India from J P. Morgan. Please go ahead.

Thank you very much closer ethylene diesel engine anymore.

José Asumendi: Thank you very much, José Asumendi from J.P. Morgan. Hello, Antonio, and very welcome, João. A couple of questions, please. Antonio, certainly very exciting product launches coming through in North America and product refreshes. I was wondering if you could talk a little bit around how everything comes together when it comes to improvement of production capacity and utilization of the plants, and ultimately also improving pricing power. I know that it's a question that goes into 2026, but as we think about that short term and maybe longer term, what are you thinking in terms of those two metrics? Second question, João. Again, most welcome, and I was wondering if you could just give us a little bit of your thoughts with regards to the key levers to improve free cash generation, maybe second half of the year, where you are hinting towards an improvement.

Hello, Antonio and very welcome Joe.

Speaker #3: Thank you Joel . Before opening to your questions , let me recap the key points from today's presentation . The third quarter revenue and shipment performances give an early signal that our actions are beginning to have a positive impact .

Antonio Filosa: Thank you, Joao. Before opening to your questions, let me recap the key points from today's presentation. The third quarter revenue and shipment performances give an early signal that our actions are beginning to have a positive impact. You can see that in Q3 we continued and accelerated the actions we started in January to correct past strategic and operational decisions. We quickly changed our organizational structure to restore proximity to our customers, dealers, and suppliers. We reconnected with our governments and regulators, and we took important decisions such as the product actions and major investments we discussed today that have restored the freedom to choose to the very heart of our strategy. Lastly, confirming our second half guidance signals our belief in further steady sequential progress quarter by quarter. That concludes our opening remarks, and I would like to ask our operator to open the line for your questions.

Couple of couple of questions. Please Antonio.

Certainly a very exciting.

Yes.

Just coming through in North America.

Refreshes.

Was wondering if you could talk a little bit around how everything comes together when it comes to <unk>.

<unk> of production capacity.

Speaker #3: You can see that in quarter three , we continued accelerated the actions we started in January to correct past strategic and operational decisions .

And utilization of the plants.

And ultimately also improving pricing power.

I know that.

It's a question that goes into 2026, but as we think about that short term and a longer term what are you thinking.

Speaker #3: We quickly changed our organizational structure to restore proximity to our customers , dealers and suppliers . We recognized with our governments and regulators , and we took important decisions such as the product actions and major investments .

Two metrics.

And then second question Joe.

Again, most welcome and I was wondering if you could just give us a little bit your thoughts with regards to.

The key levers to improve free cash generation.

Speaker #3: We discussed today that have restored the freedom to choose to the very heart of our strategy . And lastly , confirming our second half guidance for signals our belief in further steady sequential progress quarter by quarter .

Maybe second half of the year.

Where you are hinting towards an improvement is there an opportunity to even generate cash in the second half or if not.

José Asumendi: Is there an opportunity to even generate cash in the second half? If not, how do we think about the levers of improvement second half versus the first half? Thank you.

Do we think about the levers of improvement second half versus the first half. Thank you.

Speaker #3: That concludes our opening remarks . And so I would like to ask our operator to open the line for your questions . Thank you .

Oh, Thank you will cause us for your questions. So I will take the first part of your questions and then I will leave it to July with the second part of your question.

Antonio Filosa: Thank you, José, for your question. I will take the 1st part of your questions, and then I will leave to João the 2nd part of your question. Let me start, please, by saying that today, in Q3, we celebrate a return to top-line growth both in shipments and in revenue after 7 quarters of shipments and revenue decline. Since your 1st part of the question was around pricing power, we celebrate a favorable pricing for the 1st quarter after 4 quarters in a row of unfavorable pricing. We are very competitive into the market. We believe we are very well positioning for future growth.

Antonio Filosa: Thank you.

Speaker #1: Thank you . As a reminder to ask a question , please type pound key five . On your telephone keypad . The next question comes from José Osimani from JPMorgan .

Operator: Thank you. As a reminder to ask a question, please type key 5 on your telephone keypad. The next question comes from Jose Asumendi from JPMorgan. Please go ahead.

So.

Let me start please by seeing that.

Today in quarter, three we celebrate a return to topline growth Buffy shipments annual revenue after seven quarters of shipments our revenue decline.

Speaker #1: Please go ahead .

Speaker #5: Thank you very much , Jose Azurmendi from J.P. . Hello , Antonio . And very welcome , Joao . A couple of couple of questions , please .

Antonio Filosa: Thank you very much. Jose Asumendi, hello Antonio, and very welcome.

And also since your first part of the question was around pricing power.

Joao Larango: Joo.

Antonio Filosa: Couple of questions please, Antonio. Certainly a very exciting product launches coming through in North America and product refreshes. I was wondering if you could talk a little bit around how everything comes together when it comes to improvement of.

Speaker #5: Antonio . Certainly a very exciting product launches coming through in North America and product refreshes . I was wondering if you could talk a little bit around how everything comes together when it comes to improvement of production capacity and utilization of the plants and ultimately also improving pricing power .

We celebrate a favorable pricing for the first quarter after four quarters in a row of unfavorable pricing is still we are very competitive into the market.

So we believe we are very well positioning for future growth.

[Analyst 1]: Production capacity, utilization of the plants.

And the way, we want to address our future growth even in pricing power.

Antonio Filosa: The way we want to address our future growth, even in pricing power, is through a strategy that we are setting since the beginning of the year, and we are implementing since then, that is aimed to correct the past strategic decision. We know that our major issues were product gaps, both in North America and in Europe, and we are implementing strong corrections in the short term and in mid-term around those. This is the case, for instance, of the reintroduction of the V8 engine on Ram 1500, which is a big volume opportunities but also very accredited on profit per unit. This is the case of the relaunch of the IZ engine for the muscle cars of Dodge. Again, volume opportunity and profit opportunity.

Antonio Filosa: Ultimately, also improving pricing power.

Speaker #5: I know that , you know , it's a question that goes into 2026 , but as we think about that short term and maybe longer term , what are you thinking in terms of those those two metrics ?

Is through a strategy that we are setting it seems the beginning of the year. We are implementing since then.

[Analyst 1]: I know that it's a question.

Antonio Filosa: Goes into 2026, but as we think about that short term and maybe longer term, what are you thinking in terms of those two metrics?

That is <unk> is aimed to correct the bust strategic decision.

Speaker #5: And then the second question , Joe , again , most welcome . And I was wondering if you could just give us a little bit your thoughts with regards to the key levers to improve free cash generation .

[Analyst 1]: Second question.

Antonio Filosa: Joe, again most welcome, and I was wondering if you could just give us a little bit your thoughts with regards to the key levers to improve free cash generation?

So we know that our major issuers was product gaps.

Both in North America and Europe.

We're implementing strong collections in the short term and the midterm around those.

Speaker #5: Maybe second half of the year , where you are hinting towards an improvement . Is there an opportunity to even generate cash in the second half ?

[Analyst 1]: Maybe second half of the year, where.

Antonio Filosa: You are hinting towards an improvement. Is there an opportunity to even generate cash?

This is the case for it terms of the reintroduction of the V eight engine around 1500.

[Analyst 1]: In the second half?

Speaker #5: Or if not , how do we think about the levers of improvement ? Second half versus versus the first half ? Thank you .

Antonio Filosa: If not, how do we think about the levers of improvement? Second half versus the first half?

Which is a big volume opportunities, but also very accretive on profit per unit.

[Analyst 2]: Thank you.

This is the case of the relaunch of the IC engine for the muscle car solve Dodge.

Speaker #3: Thank you for your question . So I will take the first part of your questions . And then I will leave to Joel .

Antonio Filosa: Thank you, Jose, for your question. I will take the first part of your questions and then I will leave to Joao the second part of your question. Let me start please by saying that today in Q3, we celebrate a return to top line growth both in shipments and in revenue, after seven quarters of shipments and revenue decline. Also, since your first part of the question was around pricing power, we celebrate a favorable pricing for the first quarter after four quarters in a row of unfavorable pricing. Still, we are very competitive in the market. We believe we are very well positioning for future growth. The way we want to address our future growth, even in pricing power, is through a strategy that we are setting since the beginning of the year and we are implementing since then that is aimed to correct the past strategic decision.

Again, both opportunity and profit opportunity.

Speaker #3: The second part of your question . So let me start by saying that today in quarter three we celebrate a return to top line growth , both in shipments and revenue .

And this is the case for the launch of Jeep Cherokee.

Antonio Filosa: This is the case of the launch of Jeep Cherokee in the largest individual segment in the world, which is the U.S. mid-SUV segment that accounts for 20% of the entire industry in the U.S. This is the way we want to correct the past strategic decision, fulfill our product lineup with products that we know our customer wants, and grow both in volume and profit. This is the first part of my answer. I will leave João to answer the second.

In the largest individual segment in the world, which is the U S. Mid SUV segment that accounts for 20% of the entire industry in U S.

Speaker #3: After seven quarters of shipments and revenue decline . And also since your first part of the question was around pricing power , we celebrate a favorable pricing for the first quarter after four quarters in a row of unfavorable pricing .

This is the way we want a corvette the past strategic decision fulfill our product lineup with products that we know our customer wants and.

And growth both in volume and profit.

This is the first part of my answer and I will leave the July to answer the second.

Speaker #3: Still , we are very competitive into the market , so we believe we are very well positioning for future growth and the way we want to address our future growth , even in pricing power , is through a strategy that we are setting .

Thank you Antonio Hydro Sam.

João Laranjo: Thank you, Antonio. And hi, José. On your second question on the biggest driver for the free cash flow improvement in the second half, it's primarily volume growth in North America. That is the primary driver for the improvement and underscores the importance of continuing to improve savings and volumes across our machine.

So on your second question on the.

<unk> driver for the free cash flow improvement in the second half, it's primarily volume growth in North America that is the primary.

Speaker #3: Since the beginning of the year . We are implementing since then , that is is aimed to correct the past strategic decision . So we know that our major issues was product gaps , both in North America and in Europe .

Driver for the.

For the improvement and under underscores the importance of continuing to improve.

Antonio Filosa: We know that our major issues was product gaps both in North America and Europe. We are implementing strong corrections in the short term and in midterm around those. This is the case, for instance, of the reintroduction of the V8 engine or Ram 1500, which is a big volume opportunities, but also very accretive on profit per unit. This is the case of the relaunch of the IZ engine for the muscle cars of Dodge. Again, volume opportunity and profit opportunity. This is the case of the launch of Jeep Cherokee in the largest individual segment in the world, which is the U.S. mid SUV segment that accounts for 20% of the entire industry in U.S. This is the way we want to correct the past strategic decision, fulfill our product lineup with products that we know our customer wants and grows both in volume and profit.

Improved savings and volumes across our.

Our machine.

Speaker #3: And we are implementing strong corrections in the short term and in mid-term around those . This is the case , for instance , of the reintroduction of the V8 engine or Ram 1500 , which is a big volume opportunities .

Thank you next.

Antonio Filosa: Thank you. Next.

Speaker #3: But also very accretive on profit per unit . This is the case of the relaunch of the is engine for the muscle cars of Dodge .

The next question comes from Felipe <unk> from Jefferies. Please go ahead.

Operator: The next question comes from Philippe Houchois from Jefferies. Please go ahead.

Well, thank you very much and good afternoon at Citi approached with Jefferies.

Speaker #3: Again , both opportunity and profit . Opportunity , and this is the case for of the launch of Jeep Cherokee in the largest individual segment in the world , which is the US mid SUV segment that accounts for 20% of the entire industry in the US .

Philippe Houchois: Thank you very much. Good afternoon. It's Philippe Houchois at Jefferies. I have two questions. One is on the free cash flow dynamics. I understand the improvement from H1 to H2. You had negative EUR 3 billion in the first half. It seems the market seems to be anticipating being EUR 1 and 2 billion negative in the second half. I just want to clarify, though. In the second half compared to the first half, your capacity utilization, both in North America and in Europe, is probably up. Trying to understand sequentially as well, as long as you have sequential improvement in your production, which I think is the case, then normally working capital should be a significant contributor to free cash or to cash generation, notably the payables at the year-end.

I have two questions one is on.

The free cash flow dynamics.

Because I understand the improvement from <unk>.

<unk> two H two.

You had negative $3 billion in the first half it seems the market seems to be anticipating do you want to build.

Billion negative in the second half.

Speaker #3: This is the way we want to correct the past strategic decision , fulfill our product lineup with products that we know our customer wants and grows both in volume and profit .

I was just wondering can you find out in the second half compared to first half your capacity utilization both in the U S and in North America and in Europe is probably up.

And then trying to understand sequentially as well as long as you have sequential improvement in your production, which I think is the case.

Speaker #3: This is the first part of my answer , and I will leave Joel to answer the second .

Antonio Filosa: This is the first part of my answer and I will leave Joao to answer the second.

And then normally working capital should be a significant contributor to free cash or to cash generation.

Speaker #4: Thank you Anthony and hi Jose . So in your second question on the the biggest driver for the free cash flow improvement in the second half , it's primarily volume growth in North America .

Joao Larango: Thank you, Antonio. Hi Jose. On your second question on the biggest driver for the free cash flow improvement in the second half, it's primarily volume growth in North America that is the primary driver for the improvement and underscores the importance of continuing to improve savings and volumes across our machine.

Notably.

Payables at year end.

She's been helping me make sure that I'm not the wrong in that assumption or I know, you're not going to tell us what the cash we're going to be second half I'm not asking just understand the dynamics that would be helpful.

Philippe Houchois: If you can help me make sure that I'm not wrong in my assumptions, I know you're not going to tell us what the cash flow is going to be second half. I'm not asking. Just understand the dynamics. That would be helpful. The second question is on tariffs. Again, thank you for clarifying that the 1.5 billion is lower. Some of that, I guess, is the timing of the tariffs on the full-size pickup. 2026 normally should be a higher tariff because you are going to have 12 months of Ram in Mexico, and you're going to have the relaunch of the Cherokee. In 2027, you start having the benefit of reshoring more production to North America, to the US specifically, both vehicles and engines. Is it right to assume that 2027? I know it's far away, but understand the dynamics.

Speaker #4: That is the primary driver for the for the improvement and underscores the importance of continuing to improve sales and volumes across our machine .

The second question is on tariff again, thank you for clarifying that there's a $1 5 billion as lower some of it I guess is the timing of the tariffs on the full size pickup.

2026 normally it should be a higher tariffs because you are going to have 12 months of prom in Mexico.

And you're going to have the relaunch of the Cherokee.

Speaker #3: Thank you . Next .

Antonio Filosa: Thank you. Next.

Then in 2027, you start having the benefit of re shoring to more production to North America to the U S. Specifically.

Speaker #1: The next question comes from Philippe from Jefferies . Please go ahead .

Operator: The next question comes from Philippe Houchois from Jefferies. Please go ahead.

With vehicles and engines.

Speaker #6: Oh , thank you very much . And good afternoon . It's Philippe Jefferies . I have two questions . One is on the free cash flow dynamics because I understand the improvement from H1 to H2 .

[Analyst 2]: Thank you very much and good afternoon. It's Philippe Houchois, Jefferies.

Is it right to assume that 2027, and I know, it's far away, but I understand the dynamics for 2027, Terry if you're going to be lower than 2006, and potentially going back to the level of 2025. If you could help me understand that that would be great. Thank you.

Antonio Filosa: I have two questions.

[Analyst 2]: One is on the free cash flow dynamics, because I understand the improvement from H1 to H2, you had negative $3 billion in the first half. It seems the market seems to be anticipating between $1 billion and $2 billion negative in the second half. I just want to clarify, in the second half compared to the first half, your capacity utilization both in the U.S. and in North America and in Europe is probably up. Trying to understand sequentially as well, as long as you have sequential improvement in your production, which I think is the case, then normally working capital should be a significant contributor to free cash or to cash generation, notably the payables at the year end.

Philippe Houchois: The 2027 tariff is going to be lower than 2026 and potentially going back to the level of 2025. If you could help me understand that would be great. Thank you.

Speaker #6: You had negative 3 billion in the first half . It seems the market seems to be anticipating between 1 and 2 billion negative in the second half .

Yeah.

Yes for sure. Thanks, Philip there on your first question on the free cash flow all the way down here.

João Laranjo: Yes, for sure. Thanks, Philippe. On your first question on the free cash flow, the way that you're thinking, it's correct. The only piece of information is the second half versus the first half. The region where we're going to see primarily the volume improvement is North America. Other than that, your rationale is correct. On tariffs, I'll leave Antonio to answer the question.

Speaker #6: But I just want to clarify though in in the second half , compared to the first half , your capacity utilization both in the US and in North America and in Europe is probably up .

Thank you Scott or act the only a piece of information is the.

In the second half versus first half.

The region wherever you're going to see primarily the volume improvements in North America, but other than that you have rationale was correct.

Speaker #6: And then trying to understand sequentially as well , as long as you have sequential improvement in your production , which I think is the case and the normally working capital should be a significant contributor to free cash or to cash generation .

On tariffs I'll leave Antonio to answer the question.

So on tariff.

My answer is is the following so our new strategy that we've been studying implemented since January.

Speaker #6: Notably , the payables at the at the year end , if you can help me make sure that I'm not wrong in my assumptions or I know you're not going to tell us what the cash flow is going to be .

Antonio Filosa: On tariffs, my answer is the following. Our new strategy that we have been starting to implement since January has been meant to grow in our most important and largest market, which is the US, but also as a positive side effect to reduce exposure against tariffs, as you said, in the next years. Obviously, many things around this topic will happen, including the final settlement of USMCA, and we'll be ready to manage this new variable of our business equation as we are doing already. Thank you.

[Analyst 2]: If you can help me make sure that I'm not wrong in my assumptions or I know you're not going to tell us what the cash flow is going to be second half, I'm not asking, just understand the dynamics. That would be helpful. The second question is on tariffs. Thank you for clarifying that. The $1.5 billion is lower. Some of that I guess is the timing of the tariffs on the full size pickup. 2026 normally should be a higher tariff.

As been meant to grow in our most important and largest market, which is U S. But also as a positive side effect.

Speaker #6: The second half, I'm not asking just to understand the dynamics that would be helpful. The second question is on tariff. Again, thank you for clarifying that.

Reduce exposure against studies as you said in the next two years, then obviously manifests at all in the install base will happen, including the final settlement of U S. MCA.

Speaker #6: The 1.5 billion is lower . Some of that I guess , is the timing of the tariff on on the full size pickup .

Speaker #6: 2026 normally should be a higher tariff because you are going to have 12 months of ram in Mexico , and you're going to have the relaunch of the Cherokee .

Antonio Filosa: Because you are going to have 12.

[Analyst 2]: Months of Ram in Mexico and you're going to have the launch of the Cherokee. In 2027 you start having the benefit of reshoring to more production to North America, to the U.S. specifically, both vehicles and engines. Is it right to assume that 2027, I know it's far away, but understand the dynamics, the 2027 tariff is going to be lower than 2026 and potentially going back to the level of 2025. If you could help me understand that, that would be great. Thank you.

And we'll be ready to manage these are new valuable to all of the business equation as we are doing already thank.

Speaker #6: Then in 2027 , you start having the benefit of reshoring to more production to North America , to the US , specifically , both vehicles and engines .

Thank you.

Philippe Houchois: Thank you.

The next question comes from Henning Cosman from Barclays Autos. Please go ahead.

Operator: The next question comes from Henning Cosman from Barclays autos. Please go ahead.

Speaker #6: Is it right to assume that 2027 . I know it's far away , but understand the dynamics , to 2027 tariff is going to be lower than 26 and potentially going back to the level of 2025 .

Okay.

Hey, good afternoon. Thanks, so much for taking my question.

Henning Cosman: Yeah, good afternoon. Thanks so much for taking my question. Can I just ask you a little bit higher level? Your predecessor management had given us a bit of a steer saying that you've abandoned the all-weather above 10% margin company narrative. I think the indication then became more like 6% to 8%, perhaps, in favor of growing volume, growing market share. I just wanted to ask again if you're still endorsing this kind of narrative now as a new, now complete management team, and what the underlying prerequisites for this are. Does that still imply something like 10% US market share, 20% European market share? Does it require incrementally positive pricing from current levels? How does the reshoring in the US fit into that? I would imagine it would come with higher depreciation. It will probably come with higher labor costs.

Can I, just ask you a little bit higher level.

Speaker #6: If you could help me understand that , that would be great . Thank you .

Your.

The predecessor management.

<unk>, given us a bit of a steer saying that.

Speaker #4: Yes , for sure . Thanks , Felipe . The on your first question on the free cash flow , the way that you're thinking is correct , the only piece of information is the second half is the first half .

Ed Ditmire: Yes, for sure.

Joao Larango: Thanks, Philip. On your first question on the free cash flow, the way that you're thinking, it's correct. The only piece of information is the second half as the first half. The region where we're going to see primarily the volume improvement is North America. Other than that, your rationale is correct. On tariffs, I'll leave Antonio to answer the question.

The all.

All weather above 10% margin company narrative I think the indication then became more like 6% to 8%, perhaps in favor of growing volume growing market share.

I just wanted to ask again, if you're still endorsing this kind of narrative now has a new now complete management team.

Speaker #4: The region where we're going to see primarily the the volume improvement is in America . But other than that , your rationale is correct on tariffs .

And what the.

Speaker #4: I'll leave you to answer the question .

Underlying prerequisite for this.

Does that still imply something like.

Speaker #3: So on tariffs . My answer is is the following . So our new strategy that we have been starting implementing since January has been meant to grow in our most important and largest market , which is us .

Antonio Filosa: On tariff, my answer is the following. Our new strategy that we have been starting implementing since January has been meant to grow in our most important and largest market, which is the U.S., but also has a positive side effect to reduce exposure against tariff, as you said. In the next years, obviously many things around this topic will happen, including the final settlement of USMCA, and we'll be ready to manage this new variable of our business equation as we are doing already. Thank you.

10% U S market share, 20% European market share does it require incrementally.

Incrementally positive pricing from current levels.

How does the.

Shoring in the U S fit into that I would imagine they would come with.

Speaker #3: But also as , as a positive side effect to reduce exposure against tariffs . As you said in the next years , then obviously many things around this topic will happen , including .

Higher depreciation.

It will probably come with higher labor costs. If you could just give us like it sort of updated framework.

Henning Cosman: If you could just give us a sort of updated framework where you see the company going over the next few years in a sort of steady state. Secondly, perhaps more again with respect to near-term free cash flow dynamics, I just wanted to clarify. I wasn't sure if, in response to Philippe's earlier question, if you endorsed that EUR -1 to -2 billion or if you didn't mean to make any statement in that respect. Thank you very much.

Where you see the company going over the next two years.

Speaker #3: The final settlement of Usmca and we'll be ready to manage these new variable of our business equation as we are doing already . Thank you .

And then sort of steady state.

And then secondly, perhaps more again with respect to near term.

Free cash flow dynamics that I, just wanted to clarify I wasn't sure. If in response to Philips earlier question. If you endorsed.

Speaker #6: Thank you .

[Analyst 2]: Thank you.

Speaker #1: The next question comes from Henning Kaufman from Barclays Autos . Please go ahead .

Operator: The next question comes from Henning Kosman from Barclays Autos. Please go ahead.

At minus one to minus 2 billion. If you didn't mean to make any statement in that respect. Thank you very much.

Speaker #7: Yeah . Good afternoon . Thanks so much for taking my question . Can I just ask a little bit higher level ? Your predecessor management had given us a bit of a steer saying that , you know , you've abandoned the all weather above 10% margin company narrative .

[Analyst 3]: Yeah, good afternoon. Thanks so much for taking my question.

Okay.

So I'll take the second.

Antonio Filosa: Can I just ask you a little bit higher level?

João Laranjo: I'll take this second piece. No, I was not referring to the number, but the dynamics. The guidance that we have here, it's improvements versus H1, and that's what we are confirming. Thanks for asking for that clarification.

Second piece no I was not referring should there should that number but the dynamics we are.

[Analyst 3]: Your predecessor management had given us a bit of a steer, saying that, you know, you've abandoned the or whether above 10% margin company narrative. I think the indication then became more like 6 to 8%, perhaps in favor of growing volume, growing market share. I just wanted to ask again if you're still endorsing this kind of narrative now as a new, now complete management team and what the underlying prerequisites for this are. Does that still imply something like 10% U.S. market share, 20% European market share? Does it require incrementally positive pricing from current levels? How does the reshoring in the U.S. fit into that? I would imagine it would come with higher depreciation, it would probably come with higher labor costs.

The guidance that we have here, it's a proven once vessels H, one and Thats why we are confirming.

For our asking for that clarification.

Speaker #7: I think the indication then became more like 6 to 8% . Perhaps in favor of growing volume , growing market share . I just wanted to ask again , if you're still endorsing this kind of narrative now as a new now complete management team and what the underlying prerequisites for this are , does that still imply something like 10% US market share , 20% European market share ?

So thank you Anna and I will take the first part of your important question and thank you for that one.

Antonio Filosa: Thank you, Henning. I will take the first part of your important question, and thank you for that one. I believe that we will deploy we are deploying already since January a strategy of growth that will deliver to the company a steady, sequential improvement in all business KPIs quarter by quarter. This is our major target, and this is what we will do. What we understand is also that a 6% to 8% AOI business is a reasonable target for the mid-long term for this company, and we will have Capital Markets Day to discuss further on those objectives. The most important to us is now to deliver what we want to do, which is a steady, sequential improvement quarter by quarter of all business KPIs. Thank you.

So I believe that we will deploy we out of the blowing already since January a strategy of growth that will deliver to the company as steady sequential improvement in all business kpis quarter by quarter.

This is our major target is what we will do.

Speaker #7: Does it require incrementally positive pricing from current levels ? How does the reshoring in the US fit into that ? I would imagine it would come with higher depreciation .

Now what we understand is also that the 6% to 8% a Hawaii business is a reasonable target for the mid long term for this company and we will have capital market day to discuss further on those objectives.

Speaker #7: It would probably come with higher labor costs . If you could just give us like a sort of updated framework where you see the the company going over the next few years in a , in a sort of steady state .

Antonio Filosa: If you could just give us like.

The most important to US is now to deliver what we want to do which is a steady sequential improvement quarter by quarter all business Kpis.

[Analyst 3]: A sort of updated framework where you see the company going over the next few years in a sort of steady state. Secondly, perhaps more again with respect to near-term free cash flow dynamics, I just wanted to clarify. I wasn't sure if, in response to Philippe's earlier question, if you endorsed that minus $1 billion to minus $2 billion, or if you didn't mean to make any statement in that respect. Thank you very much.

Thank you.

Speaker #7: And then secondly , perhaps more again with , with respect to near-term free cash flow dynamics , I just wanted to clarify , I wasn't sure if , in response to to Philippe's earlier question , if you endorsed that minus 1 to -2 billion , or if you didn't mean to make any statement in that respect .

Yeah.

The next question comes from Thomas Besson from Kepler Please.

Operator: The next question comes from Thomas Besson from Kepler Cheuvreux. Please go ahead.

Please go ahead.

Thank you for taking my questions as well I have two please.

Thomas Besson: Thank you, Ash, for taking my questions as well. I have two, please. Firstly, for Antonio, I'd like you to talk more about the order intake, please. Could you give us a bit more granularity on the higher US order intake? What has been already the impact of relaunching Hemi on Q3 volumes? What's the initial reception of the Cherokee so far since the order intake has been open? How much benefit should we see in Q4 from this already? When should we expect the full impact on your registration figures of these new products? Could you also give us an assessment of where you see the overall US market in Q4? I think GM and Ford have talked about the 16 million SAR market. That would be useful. Thank you. The second question, probably more for João, on warranty costs and provision.

Speaker #7: Thank you very much .

Lastly for the new <unk>.

Took more but the order intake please could.

Speaker #4: And so I'll take this second piece . No , I was not referring to the to the number , but the dynamics . We are the guidance that we have here .

Joao Larango: I'll take this second piece. No, I was not referring to the number, but the dynamics, the guidance that we have here. It's improvements versus H1 and that's what we are confirming. Thanks for asking for that clarification.

Could you give us a bit more granularity on the higher U S order intake with hasn't been already the impact of Relaunching Hemi on Q3 videos with the initial reaction reception of the Cherokee So fast and so.

Speaker #4: It's improvements versus H1 and that's what we are confirming . Thanks for asking for that clarification .

The order intake has been opened.

Speaker #3: So thank you . And I will take the first part of your important question . And thank you for for that one . So I believe that we will deploy we are deploying already since January .

How much benefits should we see in Q4 from these already.

Antonio Filosa: Thank you. Anning and I will take the first part of your important question, and thank you for that one. I believe that we will deploy, we are deploying already since January, a strategy of growth that will deliver to the company a steady sequential improvement in all business KPIs, quarter by quarter. This is our major target, and this is what we will do. What we understand is also that a 6% to 8% AOI business is a reasonable target for the mid to long term for this company. We will have Capital Market Day to discuss further on those objectives. The most important to us is now to deliver what we want to do, which is a steady sequential improvement quarter by quarter of all business KPIs. Thank you.

And when should we expect the full impact on your registration figures of these new products.

Could you also give us an assessment of where you see the overall U S market in Q4, I think Jim in Florida talks about just 16 million Saar markets.

Speaker #3: A strategy of growth that will deliver to the company a steady sequential improvement in all business KPIs quarter by quarter . This is our major target .

It would be useful thank you.

And then the second question probably more for Joe.

Speaker #3: This is what we will do now . What we understand is also that a 6 to 8% ROI business is a reasonable target for the mid-term , long term for this company , and we will have capital Market Day to discuss further on those objectives .

Warranty costs and provision.

You talk about.

A change in methodology that will drive from a one.

Thomas Besson: You talk about a change in methodology that will drive some one-off charges. Can you remind us broadly the recall costs for 2025 you expect versus 2024 and 2023, and confirm that setting up this provision for using this new way of assessing future recall costs has no cash impact on H2? Can you eventually make as well some comments by region whether using different methodologies or whether costs vary a lot between North America and Europe in particular? Thank you.

One of Shadows.

Can you remind us broadly.

Recall costs for 25 years, you expect versus 'twenty, four and 'twenty three and confirmed the setting of this provision.

Speaker #3: The most important to us is now to deliver what we want to do , which is a steady sequential improvement quarter by quarter or all business KPIs .

For using this new way of assessing future mutual cost has no cash impact from this too.

Can you eventually to make as well as some commenced by region, but without use of using different methodologies are with our costs vary.

Speaker #3: Thank you .

Between North America, and Europe in particular.

Speaker #1: The next question comes from Thomas Bisson from Kepler cheuvreux . Please go ahead .

Operator: The next question comes from Thomas Besson, from Kepler Cheuvreux. Please go ahead.

<unk>.

Yeah.

Speaker #8: Thank you very for taking my questions as well . I have two , please . Firstly , for for Antonio . I'd like you to talk more about the order intake .

Thomas Besson: Thank you very much for taking my questions as well. I have two, please. Firstly for Antonio, I'd like you to talk more about the order intake, please. Could you give us a bit more granularity on the higher U.S. order intake? What has been already the impact of relaunching Hemi on Q3 volumes? What the initial reception of the Cherokee so far since the order intake has been open? How much benefit should we see in Q4 from these already? When should we expect the full impact on your registration figures of these new products? Could you also give us an assessment of where you see the overall U.S. market in Q4? I think GM and Ford have talked about the 16 million SAR market. That would be useful.

Well, Thank you Thomas and I will take the first part of your important questions and I will leave you all one sitting in the second highest in Q4 for the two questions.

Antonio Filosa: Well, thank you, Thomas. I will take the first part of your important questions, and I will leave João answering the second part. Thank you for the two questions. Your fourth question, the dynamics of order collection in the US, is going very well. Actually, it has been already 12 months in a row that we almost improved month-over-month, every month, our order portfolio. The new products have been receiving very, very well and very strongly. For instance, we have been accumulating more than 43,000 orders since we announced the Ram V8 legendary Hemi return. After announcing the Dodge muscle car Charger with an IZ variant, we received the orders that we need to close the full production up to next model year. Jeep Cherokee announcement has been receiving very, very well and very strongly, both by customers, dealers, and also journalists.

Speaker #8: Please . Could you give us a bit more granularity on the higher US order intake ? What has been already the impact of relaunching Hemi on Q3 volumes with the initial reaction reception of the Cherokee so far , since the order intake has been opened .

Your first question the dynamics of order collection in the U S.

Is going very well.

Actually it has been already 12 months in a row that we have almost improved month over month every month, our order portfolio.

Speaker #8: How much benefit should we see in Q4 from this already ? And when should we expect the full impact on your registration figures of these new products ?

And the new products are being received very very well and very strongly.

For instance, we have been accumulated more than 43000 orders.

Speaker #8: Could you also give us an assessment of where you see the overall US market in Q4 ? I think GM and Ford have talked about 16 million for markets , that would be useful .

Since we announced it to the Ram V eight legendary Hemi return.

After announcing the Dodge muscle car charted here with an icy variant.

Speaker #8: Thank you . And then the second question , probably more for for Joe on warranty costs and provision . You talk about change in methodology that will drive some one of charger's .

Joao Larango: Thank you.

Thomas Besson: The second question, probably more for Joao on warranty cost and provision. You talk about a change in methodology that will drive from one-off charges. Can you remind us broadly the recall costs for 2025 you expect versus 2024 and 2023 and confirm that setting up this provision for using this new way of assessing future recall costs has no cash impact on H2. Can you eventually make as well some comments by region, whether using different methodologies or whether costs vary a lot between North America and Europe in particular. Thank you.

We received the orders that we need to close the full production up to next model year.

And Jeep Cherokee announcement is being received very very well in a very strongly.

Speaker #8: Can you remind us broadly of the recall costs for '25 you expect versus '24 and '23, and confirm that setting up these provisions for using this new way of assessing future recall costs has no cash impact on H2? Can you eventually make some comments by region, whether using different methodologies or whether costs vary a lot between North America and Europe in particular?

Both by customers dealers and also journalist.

<unk> mentioned on the last presentation of the renew with Jeep Grand Wagoneer that also has received a lot of.

Antonio Filosa: Not to mention the last presentation of the renewed Jeep Grand Wagoneer that also has received a lot of interest from dealers, from customers, and also from journalists. We are very pleased to see our order book strengthening month-over-month, and this is very important to build upon for next year. Your question about what industry we see next year, well, we see an industry that can be fought in around 16.4, 16.5 million units for the US. This is my answer, and I will leave João answering to the second question you did. Thank you.

Interest from the letters from customers and also former journalist. So we are very pleased to see our order book straightening month over month.

And this is very important to build upon for next year.

Speaker #8: Thank you .

Your question about what industry, we see next year, well, we see an industry that.

Speaker #3: Well , thank you , Tomas and I will take the first part of your important questions , and I will leave your answer in the second part .

Antonio Filosa: Thank you. Thomas and I will take the first part of your important questions, and I will leave Joao answering the second part. Thank you for the two questions. Your first question, the dynamics of order collection in the U.S. is going very well. Actually, it has been already 12 months in a row that we almost improved month over month, every month our order portfolio, and the new products have been received very, very well and very strongly. For instance, we have been accumulating more than 43,000 orders since we announced the Ram 1500 Hemi V8 legendary Hemi return. After announcing the Dodge Charger (IZ variant), we received the order that we need to close the full production up to next model year. The Jeep Cherokee announcement has been received very, very well, very strongly, both by customers, dealers, and also journalists.

Can be fault in there around $16 four six and four 5 million units for four U S.

Speaker #3: Thank you for for the two questions . So your first question , the dynamics of order collection in in US is going very well .

This is my answer and I will leave a draw on selling to the second question you did thank you.

Okay. So.

Speaker #3: Actually , it has been already 12 months in a that we almost improved month over month , every month . Our order portfolio and the new products have been received very , very well and very strongly .

Speaker #3: Actually , it has been already 12 months in a row instance , we have been accumulating more than 43,000 orders . Since we announced the run V8 legendary Hemi return after announcing the Dodge Muscle Car Charger with an easy variant , we received the orders that we need to close the full production up to next model year and Jeep Cherokee announcement has been received very , very well .

On the warranty the first thing is that the methodology of Delta we are.

João Laranjo: On the warranty, the first thing is that the methodology that we are reviewing would primarily impact the US and Europe. The potential adjustments would be a non-cash provision in 2025. The warranty cost, the total warranty cost for the group in 2023 was EUR 8.9 billion. 2024, sorry. Okay. No, corrections here. I was actually mentioning the balance sheet for warranty in 2024 was EUR 9.3 billion. On the details specifically to the recalls, we can follow up offline if it's okay, Thomas, because I don't have the numbers on hand here.

Reviewing would primarily impact our U S in Europe.

And the potential adjustments would be.

A noncash provision in 2020.

In 2025 N.

India, the warranty costs, the total warranty costs for <unk>.

For the group in 2023 was $8 9 billion euros.

In 2024.

Sir.

Yeah.

Okay.

Speaker #3: A very strongly both by customers , dealers and also journalists . Not to mention the last presentation of the renewable Jeep Grand Wagoneer that also has received a lot of interest from dealers from customers , and also from journalists .

Our quarter actions here with actually mention today the balance sheet for warranty in 2024 was nine point.

Antonio Filosa: Not to mention the last presentation of the renewed Jeep Grand Wagoneer that also has received a lot of interest from dealers, from customers, and also from journalists. We are very pleased to see our order book strengthening month over month. This is very important to build upon for next year. Your question about what industry we see next year? We see an industry that can be fought in around 16.4, 16.5 million units for us. This is my answer, and I will leave Joao answering to the second question. You did, thank you.

3 billion.

And then on the details, especially if Richard every calls we can follow up on offline if its okay. Thomas because I don't have the numbers on hand here.

Speaker #3: So we are very pleased to see our order book strengthening month over month . And this is very important to build upon for next year .

Sure. Thank you very much.

Thomas Besson: João, thank you very much.

The next question comes from Patrick Hummel from UBS. Please go ahead.

Operator: The next question comes from Patrick Hummel from UBS. Please go ahead.

Yes. Thank you Patrick from UBS here also two questions from my end.

Speaker #3: Your question about what industry we see next year ? Well , we see an industry that can be fought in around 16.4 , 16.5 million units for for us , this is my answer and I will leave Joao answering to the second question .

Patrick Hummel: Yeah, thank you, Patrick from UBS here. Also, two questions from my end. The first one, João, your predecessor said that the second half AOI in North America should be positive. Now, this is nowhere in the deck. You had a good volume bounce over the first half in North America. I was just wondering if that statement is still valid, that we should expect a positive AOI for North America in the second half. My second question relates to free cash generation of the business. I appreciate today is not Guidance Day, but if we qualitatively think about the puts and takes for the cash flow as we're heading into next year, is it fair to say there are going to be higher investments year-over-year because you've got that $13 billion plan for the U.S.?

The first one.

Joe Your predecessor said that the.

The second half OE in North America should be positive.

Now this is nowhere in the deck.

Speaker #3: You did . Thank you .

Speaker #4: Okay, so on the warranty, the first thing is that the methodology that we are reviewing will primarily impact the U.S. and Europe, and the potential adjustments would be a non-cash provision in 2020.

You had a good volume bounce over the first half in North America.

Joao Larango: Okay, on the warranty, the first thing is that the methodology that we are reviewing would primarily impact the U.S. and Europe, and the potential adjustments would be a non-cash provision in 2025. The warranty cost, the total warranty cost for the group in 2023, was €8.9 billion in 2024.

So I was just wondering if that statement is still valid that we should expect a positive for North America in the second half.

And my second question.

<unk> to free cash generation of the business.

I appreciate today is not guidance day, but if we <unk>.

Speaker #4: In 2025 and the the warranty costs , the total warranty cost for for the group in 2023 was €8.9 billion , and 2024 sorry .

Qualitatively think about the puts and takes for the cash flow as we were heading into next year.

Is it is it fair to say, they're going to be higher investments year over year, because you've got that 13 billion.

Dollar plan for the U S. I guess some of that Capex is going to be incremental.

[Analyst 2]: Start.

Patrick Hummel: I guess some of that CapEx is going to be incremental. I'm also wondering if there is a little trailing effect on free cash flow of any bigger, further one-off announcements you might have in the second half of this year. Would you say with confidence that next year's free cash flow should be in positive free territory, or is that too early to say? Thank you.

And I'm sort of wondering if there is a little <unk>.

Speaker #4: Okay , now corrections here was actually mentioned . The the balance sheet for warranty in 2024 was 9.3 billion . And then on the details .

Trailing effect on free cash flow of any bigger further one of announcements you might have in the second half of this year. So would you say with confidence that next year's free cash flow should be in positive free territory or is that too early to say thank you.

Joao Larango: Okay, corrections here. I was actually mentioning the balance sheet for warranty in 2024 was $9.3 billion. On the details, specifically to the free calls, we can follow up offline if it's okay, Thomas, because I don't have the numbers on hand here.

Speaker #4: Specific to the recalls , we can follow up on offline if it's okay . Tomas . Because I don't have the numbers on hand here .

Yeah no. Thank you for that question Patrick So first one on North America, we are not providing guidance by region, but.

João Laranjo: Yeah, no, thank you for the question, Patrick. First, on North America, we are not providing guidance by region, but we are very focused on sequentially improving quarter by quarter, as Antonio mentioned. On free cash flow, despite the investments that we have announced in the US, we continue to focus on monthly investments around 8% of our revenue going forward. In relation to the adjustments that we are working on our strategic plan, we are still going through them and assessing the amount. I don't have right now a final figure to understand the impacts for next year. We'll provide an update, obviously, on that when we have the financials for the full-year financials. Thank you.

Speaker #8: Thank you very much .

Thomas Besson: Thank you very much.

We are we are very focused on a sequentially improving quarter by quarter as Tony mentioned, and then on free cash flow.

Speaker #1: The next question comes from Patrick Hummel from UBS . Please go ahead .

Operator: The next question comes from Patrick Hummel from UBS. Please go ahead.

Speaker #9: Yes . Thank you . Patrick , from UBS here . Also , two questions from my end . The first one , Joel , your your predecessor said that the second half , A.Y.

[Analyst 1]: Yeah, thank you. Patrick from UBS here. Also, two questions from my end. The first one, Joao, your predecessor said that the second half AOI in North America should be positive. Now, this is nowhere in the deck. You had a good volume bounce over the first half in North America. I was just wondering if that statement is still valid, that we should expect a positive AOI for North America in the second half. My second question relates to free cash generation of the business. I appreciate today is not guidance day, but if we qualitatively think about the puts and takes for the cash flow as we're heading into next year, is it fair to say there are going to be higher investments year over year? Because you've got that $13 billion plan for the U.S.

Despite.

The investments that we have announced in the U S. We continue to focus on maintaining investments of around 8% of our revenue going forward.

Speaker #9: in North America should be positive . Now , this is nowhere in the deck . You had a good volume bounce over the first half in North America .

N D.

In relation to the.

Good day adjustments that we are working on our strategic plan we.

We are still going through them and.

Speaker #9: So I was just wondering if that statement is still valid , that we should expect a positive A.Y. for North America in the second half .

Assessing down also.

I don't have right now.

Final figures to you.

Speaker #9: And my second question relates to free cash generation of the business . I appreciate today's not guidance day , but if we , you know , qualitatively , think about the puts and takes for the cash flow as we're heading into next year , is it is it fair to say they're going to be higher investments year over year because you've got that $13 billion plan for the US ?

Understand the impacts for next year.

And we will provide an update obviously on that when we what we.

We have the financials for the full year financials. Thank you.

Thank you.

Patrick Hummel: Thank you.

The next question comes from Michael found <unk> from <unk> BHF. Please go ahead.

Operator: The next question comes from Michael Foundukidis from Oddo BHF. Please go ahead.

Yes, Hi, Michael for model two questions on my side first one on the U S investments you recently announced.

Speaker #9: I guess some of that CapEx is going to be incremental . And I'm also wondering if there is a little , you know , trailing effect on free cash flow of any bigger further one off announcements .

[Analyst 1]: I guess some of that CapEx is going to be incremental and I'm still wondering if there is a little trailing effect on free cash flow of any bigger, further one-off announcements you might have in the second half of this year. Would you say with confidence that next year's free cash flow should be in positive free territory or is that too early to say?

Michael Foundukidis: Yes. Hi, Michael from Oddo. Two questions on my side. First one, on the US investments you recently announced with plans to significantly increase vehicle production in the country. This could have some implications on your cost structure, I guess, and probably for your peers as well if they decide to go on the same path. Would you be eager to have your view on this? Do you believe that the pricing environment in the US could be negative regarding new vehicle demand going forward, or do you think that you can get some substantial, let's say, efficiency or competitiveness gains to offset this higher cost? Second question on volumes. Any comments you could share on October's or maybe Q4 trends, especially in the US? You highlighted several times during your presentation that North American volumes were the key driver of the expected earnings improvement.

Michael Foundoukidis: Yes. Hi, Michael from Oddo. Two questions on my side. First one, on the US investments you recently announced with plans to significantly increase vehicle production in the country. This could have some implications on your cost structure, I guess, and probably for your peers as well if they decide to go on the same path. Would you be eager to have your view on this? Do you believe that the pricing environment in the US could be negative regarding new vehicle demand going forward, or do you think that you can get some substantial, let's say, efficiency or competitiveness gains to offset this higher cost? Second question on volumes. Any comments you could share on October's or maybe Q4 trends, especially in the US? You highlighted several times during your presentation that North American volumes were the key driver of the expected earnings improvement.

With plans to significantly increase vehicle predictions in the country.

It could have some implications on your cost structure I guess, it probably for your peers as well if they decide to go the same path.

Speaker #9: You might have in the second half of this year . So would you say with confidence that next year's free cash flow should be in positive free territory , or is that too early to say thank you ?

Would you be eager to have you have your view on this and do you believe that the pricing environment in the U S could be.

[Analyst 2]: Thank you.

Speaker #4: Yeah . No , thank you for the question . So first on on North America , we are not providing guidance by region , but we are .

Joao Larango: Yeah, no, thank you for the question. So first on North America, we are not providing guidance by region, but we are very focused on sequentially improving quarter by quarter, as Antonio mentioned, and then on free cash flow. Despite the investments that we have announced in the U.S., we continue to focus on monthly investments around 8% of our revenue going forward in relation to the adjustments that we are working on our strategic plan. We are still going through them and assessing the amount. I don't have right now a final figure to understand the impacts for next year. We'll provide an update obviously on that when we have the financials for the full year. Thank you.

Regarding new vehicle demand going forward or do you think that you can get.

Substantial let's say efficiency competitiveness gains to offset these higher costs.

Speaker #4: We are very focused on sequentially improvement quarter by quarter . As Tony mentioned . And then on free cash flow , despite the investments that we have announced in the US , we continue to to focus on maintain investments around 80% of our revenue going forward .

And then second question on volumes any comments you could share on October or maybe Q4 trends, especially in the U S.

You highlighted prevent several times during your presentation that North American volumes.

Well the key driver of the expected earnings improvement. So would you expect most of this improved momentum to come let's say in the next six to 12 months to be driven by retail or fleets or boost equity. Thank you.

Speaker #4: And the in relation to the to the adjustments that we are working on , our strategic plan , we are still going through them and assessing the amount .

Michael Foundukidis: Would you expect most of this improved momentum to come, let's say, in the next 6 to 12 months to be driven by retail or fleets or both equally? Thank you.

Michael Foundoukidis: Would you expect most of this improved momentum to come, let's say, in the next 6 to 12 months to be driven by retail or fleets or both equally? Thank you.

Okay.

Well. Thank you very much Michael for your two questions and I will answer both of them.

Speaker #4: So I don't have right now final figures to understand the the impacts for next year . And we'll provide an update obviously on that when we we have the financials for the full year financials .

Antonio Filosa: Oh, thank you very much, Michael, for your two questions, and I will answer both of them. On the volume, which is the latest question that you did on October and Q4, yes. We see improvement on volume in North America, mainly in the U.S., because we will see the first positive impact of the launches. The V8 Ram 1500 is hitting now the dealer lots and is turning very, very fast, driven by a very strong pent-up demand. We will launch in production Jeep Cherokee by the end of Q4, so the first units will get to the dealer lots in that period. Obviously, the major positive impact will start being visible in Q1 next year when the largest portion of first-unit builds will hit the U.S. dealer lot.

So.

On the volume, which is the latest question that you did a little better in quarter four yes.

We see improvement on volume in North America, mainly in U S.

Speaker #4: Thank you .

Speaker #9: Thank you .

Because we will see the first.

[Analyst 2]: Thank you.

The positive impact of the launches.

Speaker #1: The next question comes from Michael Dukakis from Auto . Please go ahead .

Operator: The next question comes from Michael Foundoukidis from ODDO BHF. Please go ahead.

The V. A duran 15, Android is hating to know the dealer lots and is turning very very fast.

Speaker #10: Yes . Hi , Michael from Odo . Two questions on my side . First one on the US investments you recently announced with plans to significantly increase vehicle production in the country .

Michael Foundoukidis: Yes, hi, Michael from Odo. Two questions on my side. First one on the U.S. investments you recently announced with plans to significantly increase vehicle production in the country. This could have some implications on your cost structure, I guess, and probably for your peers as well if they decide to go on the same path. Would you be eager to have your view on this? Do you believe that the pricing environment in the U.S. could be negative regarding new vehicle demand going forward, or do you think that you can get some substantial efficiency or competitiveness gains to offset this higher cost? Second question on volumes. Any comments you could share on October or maybe Q4 trends, especially in the U.S.? You highlighted several times during your presentation that North American volumes were the key driver of the expected earnings improvement.

<unk> by a very strong pent up demand.

We would launch in production on Jeep Cherokee by the end of quarter four so the first units.

Speaker #10: This could have some implications on your cost structure . I guess , and probably for your peers as well . If they decide to go on the same path , would you be eager to have your view , your view on this ?

We'll get to the dealer lots in that in that period, obviously, the major positive input will start being visible in quarter. One next year when the largest portion of our first unit builds we adhere to the U S dealer a lot the same story.

Speaker #10: And do you believe that the pricing environment in the US could be a negative regarding new vehicle demand going forward ? Or do you think that you can get some substantial , efficiency or competitiveness gains to offset this higher cost ?

On the Dol Charger IC engine equipped Tibet equipment that we'll be launching production in the next months.

Antonio Filosa: The same story on the Dodge Charger IZ engine equipment that will be launched in production in the next months. Few units will get to the dealer lots by the end of the year. Most of them will be hitting the dealer lots by Q1 next year. Yes, volumes will increase in the U.S., will increase in North America. The first part of your question is about the investment that we are deploying in U.S. products and plants and if it will have an impact on profitability. Number 1, we see a pricing scenario for the U.S., which is stable, and this is good news for us. Number 2, we are working on cost efficiencies in all the globe and obviously in North American plants and U.S. plants.

Speaker #10: And then second question on volumes . Any comment you could share on October or maybe Q4 trends , especially in the US , you highlighted several times during your presentation that North American volumes were the key driver of the expected earnings improvement .

New units that will get launched by the end of the year. Most of them are will be hitting the dealer lots by quarter. One next year by yes volumes will increase in U S will increase in North America.

Speaker #10: So would you expect most of this improvement momentum to come , let's say , in the next 6 to 12 months , to be driven by retail or fleets or both equally ?

Michael Foundoukidis: Would you expect most of this improved momentum to come, let's say, in the next six to twelve months, to be driven by retail or fleets or both equally? Thank you.

The first part of your question is about the investment.

Speaker #10: Thank you .

That we are deploying in the U S products and plants.

Speaker #3: Thank you very much , Michael , for for your two questions . And I will answer both of them . So on the volume , which is the the latest question that you did on October and quarter four .

And if you will have an impact on profitability.

Antonio Filosa: Thank you very much, Michael, for your two questions, and I will answer both of them. On the volume, which is the latest question that you did on October and Q4, yes, we see improvement on volume in North America, mainly U.S., because we will see the first positive impact of the launches. The Ram 1500 Hemi V8 is hitting now the dealer lots, and it's turning very, very fast, driven by a very strong pent-up demand. We will launch in production Jeep Cherokee by the end of Q4, so the first units will get to the dealer lots in that period. Obviously, the major positive impact will start being visible in Q1 next year when the largest portion of first unit builds will hit the U.S. dealer lot. The same story on the Dodge Charger (IZ variant) engine equipped that will be launching production in the next months.

Number one we see a pricing scenario for U S, which is stable.

And this is good news for us.

Speaker #3: Yes , we see improvement on volume in North America , mainly in US because we will see the first positive impact of the launches .

Number two we are working on the cost efficiencies.

In the all the globe and obviously north American plants in the U S plants.

Number three our investment is meant to grow in the largest and most important market that we manage the Luigi we see just positive impacts out of it.

Speaker #3: The V8 Ram 1500 is hitting now . The dealer lots and is turning very , very fast , driven by a very strong pent up demand .

Antonio Filosa: Number three, our investment is meant to grow in the largest and most important market that we manage. We see just positive impacts out of it. Thank you very much for your question.

Thank you very much for your question.

Speaker #3: We will launch in production on Jeep Cherokee by the end of quarter four . So the first units will get to the dealer lots in that , in that period .

The next question comes from Horst Schneider from Bank of America. Please go ahead.

Operator: The next question comes from Horst Schneider from Bank of America. Please go ahead.

Speaker #3: Obviously , the major positive impact will start being visible in quarter one next year , when the largest portion of first unit builds will hit the US dealer lot .

Yes, Thank you for taking my questions.

Horst Schneider: Yes. Thank you for taking my questions, and good morning or good afternoon. The first one relates to Europe. A colleague asked already about your expectation for the North American margins. In that context, I'm asking about Europe because you said in the H1 call that you aim to improve margins in Europe. You just said in the US also you want to improve margins semester over semester. Can you confirm that also for Europe maybe? My impression is that Europe is getting slightly worse because you talk about increasing incentives and the BEV shares increasing. My question is, what implication has that got on European profitability? The second question that I have is regarding working capital. Maybe you can explain how you expect working capital basically to develop into year-end. I would expect inventories to increase slightly.

Good morning, or good afternoon.

The first one relates to Europe.

Asked already about your expectation for the North American margins.

Speaker #3: The same story on the Dodge Charger is engine equipment . Equipment that will be launched in production in the next months . Few units will get little lots by the end of the year .

In that context, I'm asking about Europe, because you set in the <unk> call that you aim to improve margins in Europe, you just set in U S. Also you want to improve margins.

Antonio Filosa: Few units will get to dealer lots by the end of the year. Most of them will be hitting the dealer lots by Q1 next year. Yes, volumes will increase in U.S., will increase in North America. The first part of your question is about the investment that we are deploying in U.S. products and plants and if it will have an impact on profitability. Number one, we see a pricing scenario for us which is stable, and this is good news for us. Number two, we are working on cost efficiencies in all the globe and obviously North American plants and U.S. plants. Number three, our investment is meant to grow in the largest and most important market that we manage. We see just positive impacts out of it. Thank you very much for your question.

As a matter of a semester can you confirm that also for Europe, maybe because my impression is that Europe is getting.

Speaker #3: Most of them will be hitting the dealer lots by quarter one next year . But yes , volumes will increase in US will increase in North America .

Slightly worse, because you talk about increasing incentives to enter back shares increasing so therefore my question is what implication asset got on European profitability.

Speaker #3: The first part of your question is about the investment that we are deploying in us products . And plants , and if he will have an impact on profitability .

And the second question that I have is regarding working capital.

Maybe you can explain how you expect Bakken capital basically to develop into year end.

Speaker #3: So number one , we see a pricing scenario for us , which is stable . And this is good news for us . Number two , we are working on cost efficiencies in all the globe .

And so I would expect inventories to increase slightly maybe you can quantify that and trade.

Horst Schneider: Maybe you can quantify that and trade payables also to increase. In that context, with this Nexperia chip shortage, maybe you can say how your plans could be affected by that, so if there's any supply disruption coming up, if that plan would be at risk. The last question that I have is on the $13 billion CapEx in the U.S. I wonder what that means in terms of the structuring need for Mexico and Canada. Not sure if you ever made a statement on that if you plan any plant closures. Also, can you maybe split the $13 billion CapEx into capitalized R&D or not capitalized R&D, but also into CapEx for property plant equipment? Thank you.

But it's also to increase but in that context.

<unk> Perry our chief shortage, maybe you can say how your plans could be affected by that so if there's any display a supply disruption coming up if that plan would be at risk and the last questions that I have is on.

Speaker #3: And obviously in North American plants and US plants . Number three , our investment is meant to grow in the largest and most important market that we manage .

Speaker #3: So we see just positive impacts out of it . Thank you very much for your question .

The 13 billion U S dollar capex in the U S.

I wonder what that means in terms of restructuring need for.

Mexico, and Canada, and a trophy ever make a statement on that if you plan any plant closures, but also can you maybe split the 13 Dalian.

Speaker #1: The next question comes from Horst Schneider from Bank of America . Please go ahead .

Operator: The next question comes from Horst Schneider from Bank of America. Please go ahead.

<unk> into capitalized or not capitalized.

Speaker #11: Yes . Thank you for taking my questions . And good morning or good afternoon . The first one relates to Europe . A colleague asked already about your expectation for the North American margins .

Horst Schneider: Yes, thank you for taking my questions and good morning or good afternoon. The first one relates to Europe. A colleague asked already about your expectation for the North American margins. In that context, I'm asking about Europe because you said in the H1 call that you aim to improve margins in Europe. You just said in the U.S. also you want to improve margins semester over semester. Can you confirm that also for Europe? Maybe? Because my impression is that Europe is getting slightly worse because you talk about increasing incentives and the BEV shares increasing. Therefore, my question is what implication has that got on European profitability? The second question that I have is regarding working capital. Maybe you can explain how you expect working capital basically to develop into year end.

R&D, but also into Capex for property plant equipment. Thank you.

Okay.

Youll horse for your clear three questions. So let me start answering with the European parts.

Antonio Filosa: Okay. Thank you, Horst, for your clear 3 questions. Let me start answering with the European parts. In Europe as well, we intend to do 2 things: earn back the market share that we have been declining a little bit. This is majorly driven by 3 product actions. Again, product is at the core of our new strategy that we are implementing. The first is in A segment. In A segment, we will launch in production in the end of November Fiat 500 hybrids. This is first a big volume opportunity, mainly in Italy. Second, profit per unit accredited means for sure the hybrid version of Fiat 500 will generate to us a better profit per unit than the only BEV version.

Speaker #11: In that context , I'm asking about Europe because you said in the H1 call that you aim to improve margins in Europe . You just said in the US .

So Europe as well, we intend to do two things.

Speaker #11: Also , you want to improve margins semester over semester . Can you confirm that also for Europe , maybe because my impression is that Europe is getting slightly worse because you talk about increasing incentives and the shares increasing .

Third back the market share that we have been declining a little bit.

And this is majorly driven by three product action again product is at the core of our new strategy that we are implementing.

Speaker #11: So therefore my question is what implication has it got on European profitability ? Then the second question that I have is regarding working capital .

So the first season in a segment.

While in a segment, we will launch in production in the end of November.

Speaker #11: Maybe you can explain how you expect working capital basically to develop into year end . So I would expect inventories to increase slightly .

500 <unk>.

This is first a big volume opportunities mainly in Italy.

Horst Schneider: I would expect inventories to increase slightly, maybe you can quantify that and trade payables also to increase. In that context, this is an experience chip shortage. Maybe you can say how your plans could be affected by that. If there's any supply disruption coming up, if that plan would be at risk. The last question that I have is on the $13 billion capex in the U.S. I wonder what that means in terms of restructuring need for Mexico and Canada. Not sure if you ever made a statement on that, if you plan any plant closures. Also, can you maybe split the $13 billion capex into capitalized or not capitalized R&D, into R&D but also into capex for property, plant, equipment.

Doug on profit per unit our creative.

Speaker #11: Maybe you can quantify that and trade payables also to increase . But in that context , with this next period , chip shortage , maybe you can say how your plans could be affected by that .

For sure the IV, the virtual and the Fiat 500 will generate to us a better profit per unit than the only BBB Russia.

The second product offensive that we have in Europe is around the B segment.

Speaker #11: So if there's any supply disruption coming up , if that plan would be at risk . And the last question that I have is on the 13 billion USD CapEx in the US , I wonder what that means in terms of restructuring need for Mexico and Canada .

Antonio Filosa: The second product offensive that we have in Europe is around B-segment, where we see a big volume opportunity in ramping up quicker the four products out of a Smart Car platform. Again, we improved our production by 57,000 units year-over-year. This is because we have a very strong order book that so far it's 120,000 units orders collected in those four important nameplates. This is for sure a big volume opportunity that we have in front of us. The third product action is about the launch of Jeep Compass out of Melfi plant in Italy. Jeep Compass will be our strong player into the C-SUV segment in Europe, which is a big volume opportunity for us, but also a profit opportunity for us.

Where do we see a big volume opportunity in ramping up quicker the four products, our Dover smiles car platform.

Again.

We improved our production by 57000 units year over year.

Speaker #11: Not sure if you ever made a statement on that . If you plan any plant closures , but also , can you maybe split the $13 billion CapEx into capital or not capitalized into into R&D , but also into CapEx for property , plant , equipment ?

This is because we have a very strong order book that so far.

120, K units orders collected in those four important neighborhoods.

Speaker #11: Thank you .

Michael Foundoukidis: Thank you.

This is for sure a big volume opportunity that we have in front of us.

Speaker #3: Okay . Thank you all for your clear three questions . So let me start answering with the European parts . So in Europe as well , we intend to do two things .

Antonio Filosa: Okay, thank you, Horst, for your clear three questions. Let me start answering with the European parts. In Europe as well, we intend to do two things: earn back the market share that we have been declining a little bit. This is majorly driven by three product actions. Product is at the core of our new strategy that we are implementing. The first is in A segment. In A segment, we will launch in production at the end of November Fiat 500 Hybrid. This is first a big volume opportunity, mainly in Italy. Second, profit per unit accretive since for sure the hybrid version of Fiat 500 will generate to us a better profit per unit than the only BEV version.

The third product action is about the launch of Jeep Compass outdoor melfi plant in Italy.

Jeep compounds that will be our strong play out into the C. SUV segment in Europe.

Speaker #3: Earn back the market share that we have been declining a little bit . And this is majorly driven by three product actions . Again , product is at the core of our new strategy that we are implementing .

Which is a big volume opportunity for us, but also a profit opportunity for us.

So for sure in Europe, we see a very nice future of volume growth.

Antonio Filosa: For sure, in Europe, we see a very nice future of volume growth, but we also see some important profit improvement driven by mix of models and mix of trims per each model. On Europe, I also want to comment a little bit on the regulatory framework that we see today. What we see in Europe is a regulatory framework. Change it quickly. We have been working very intensely with the SCA organization, but not only, to promote our ideas of flexibilities that we want to introduce in this regulatory framework. I've been very vocal in the press and with stakeholders about the four major points of our agenda, four major flexibilities that we would like to introduce.

Speaker #3: So the first is in a segment . So in a segment we will launch in production in end of November at 500 hybrids .

We also see some important profit improvement driven by mix of models and mix our dreams, but each model.

Speaker #3: This is first a big volume opportunity mainly in Italy . Tegan profit per unit accretive since for sure the hybrid version of Fiat 500 will generate to us a better profit per unit than the only BV version .

Our euro volatile Wanna comment a little bit the regulatory framework that we see today.

But what we see in Europe is a regulatory framework.

Jed and change it quickly.

And we have been working very intensely with the <unk>.

Speaker #3: The second product offensive that we have in Europe is around B segment , where we see a big volume opportunity in ramping up quicker .

Antonio Filosa: The second product offensive that we have in Europe is around B segment, where we see a big volume opportunity in ramping up quicker the four products out of a smart car platform. We improved our production by 57,000 units year over year. This is because we have a very strong order book that so far is 120,000 units orders collected in those four important nameplates. This is for sure a big volume opportunity that we have in front of us. The third product action is about the launch of Jeep Compass out of Melfi plant in Italy. Jeep Compass will be our strong player into the C SUV segment in Europe, which is a big volume opportunity for us, but also a profit opportunity for us.

Organization Battle totally.

To promote our ideas of Flexibilities that we want to introduce in this regulatory framework and I've been very vocal in the press and with stakeholders about the four major points of our agenda four major flexibilities that we would like to introduce.

Speaker #3: The four products out of smart car platform again , we improved our production by 57,000 units year over year . This is because we have a very strong order book that so far it's 120 K units orders collected in those four important nameplates .

So on the 30 million dollar investment in the U S, which I believe is the second path of.

Antonio Filosa: On the $13 billion investment in the US, which I believe is the second part of your questions, well, for sure, we will use that to leverage the industrial capacity that we have in North America everywhere, for sure in the US, but also elsewhere, where we are not announcing any plant shutdown. Finally, on the cash management, João, if you want to add your point, please.

Your questions well.

For sure we will use that to leverage the industrial capacity that we have in North America everywhere.

Speaker #3: This is for sure a big volume opportunity that we have in front of us . The third product action , is about the launch of Jeep Compass out of Melfi plant in Italy .

For sure in the U S.

But also elsewhere, while we are not announcing a new plant shutdown.

Speaker #3: Jeep compass will be our strong player into the sea of segment in Europe , which is a big volume opportunity for us , but also profit opportunity for us .

Finally on the cash management draw if you want <unk> sure adds to your point that is so high horse on the AR.

João Laranjo: Yeah. Hi, Horst. On the working capital, we do expect the dynamics that you mentioned due to the increase of volumes in North America, as I mentioned previously. Obviously, any production disruption from now to the end of the year would have a large working capital impact because of the negative working capital positions that we have, right, as we usually collect the cash as we invoice the vehicles and have payment terms with suppliers.

Work capital.

We do expect the dynamics that you mentioned due to the increase of volumes in North America as I mentioned previously and obviously any production disruption.

Speaker #3: So for sure in Europe we see a very nice future of volume growth , but we also see some important profit improvement driven by mix of models and mix of trims for each model .

Antonio Filosa: In Europe, we see a very nice future of volume growth, but we also see some important profit improvement driven by mix of models and mix of trims for each model. On Europe, I also want to comment a little bit on the regulatory framework that we see today. What we see in Europe is a regulatory framework and change it quickly. We have been working very intensely with the ACEA organization, but not only, to promote our ideas of flexibilities that we want to introduce in this regulatory framework. I've been very vocal in the press with stakeholders about the four major points of our agenda, four major flexibilities that we would like to introduce.

For now till the end of the year would have a large working capital impact because of the negative.

Speaker #3: On Europe, I also want to comment a little bit on the regulatory framework that we see today. What we see in Europe is a regulatory framework.

Working capital positions that we have right as we use.

Usually collected.

Cassia as we invoice the vehicles and have a payment terms with suppliers.

Speaker #3: And change it quickly . And we have been working very intensely with the Asia organization . But not only to promote our ideas of flexibilities that we want to introduce in this regulatory framework .

And your supply until then.

Horst Schneider: Your supply is safe until when? Volkswagen said the supply is safe until end of next week. Is it the same for you? That visibility is just poor for you as well?

Because like I said the supply is safe until end of next week is the same for you that visibility, it's Jack Poole for you as well.

Okay.

So we are monitoring a day by day on daily basis, the chip the cheaper situation from an Expedia, we have a cross functional war room in the building where I'm sitting there to hedge these as primary job and everyday we are.

Antonio Filosa: We are monitoring day by day on daily basis the chip situation from Nexperia. We have a cross-functional war room in the building where I'm sitting that has this as primary job. Every day, we are pushing actions and projects to extend our period. This is a day-by-day management of what is an industry-wide global issue.

Speaker #3: And I've been very vocal in the press and with stakeholders about the four major points of our agenda for major flexibilities that we would like to introduce on the $13 billion investment in the US , which I believe is the second part of your questions .

[Analyst 2]: On.

Antonio Filosa: The $13 billion investment in the U.S., which I believe is the second part of your questions, for sure we will use that to leverage the industrial capacity that we have in North America, everywhere for sure in the U.S. but also elsewhere where we are not announcing any planned shutdown. Finally, on the cash management, Joao, if you want to add your points, please.

<unk> extra long term projects to withstand our hour period. So these are management day by day management all while these are industry wide global issue.

Speaker #3: Well , for sure , we will use that to leverage the industrial capacity that we have in North America . Everywhere . For sure .

Speaker #3: In the US , but also elsewhere where we are not announcing any plant shutdown . Finally , on the cash management , if you want to .

Alright. Thank you all the best Thank you.

Horst Schneider: Yes. All right. Thank you. All the best.

Antonio Filosa: Thank you. Thank you very much.

Thank you. We'll go next question comes from Emmanuel Rosner from Wolfe Research. Please go ahead.

Operator: The next question comes from Emmanuel Rosner from Wolfe Research. Please go ahead.

Speaker #4: Yeah , sure .

Speaker #3: Add your points , please .

Great. Thanks, Thanks for taking my questions. The first one is just a point of clarification visa.

Speaker #4: So high horse on the work capital . We do expect the dynamics that you mentioned due to the increased volumes in North America .

Joao Larango: Hi Horst, on the working capital, we do expect the dynamics that you mentioned due to the increase of volumes in North America as I mentioned previously, and obviously any production disruption from now to the end of the year would have a large working capital impact because of the negative working capital positions that we have. Right. As we usually collect the cash as we invoice the vehicles and have payment terms with suppliers.

Emmanuel Rosner: Great. Thanks for taking my questions. The first one is just a point of clarification. These charges that you're taking in the second half, both for, I guess, turnaround actions but also for warranty, can you just confirm again if there's any sort of cash impact that you should be thinking about associated with it and whether that would be included in the free cash flow reiterated guidance? Then just maybe a little bit longer term, with these changes in US regulations and in particular, significant easing in the emissions regulations, what kind of opportunity does that provide for you? What kind of upside does that unlock? One of your D3 competitors is on record saying that this is a multibillion-dollar opportunity. How would you plan to take advantage of it?

Charges.

That you are taking in the second half both for.

I guess turnaround actions, but also in a full warranty can you just confirm again.

Speaker #4: As I mentioned previously , and obviously any production disruption for now to the end of the year would have a large working capital impact because of the negative working capital positions that we we have , right .

If there is any sort of cash impact that you should be thinking about.

Associated with it.

And whether that would be included in the free cash flow reiterated guidance and then just maybe a little bit longer term.

Speaker #4: As we usually collect the the cash , as we invoice the vehicles and have a payment terms with suppliers .

With this changes in U S regulations and in particular significant easing in the emissions regulations, what kind of.

Speaker #11: And you supply safe until then , Volkswagen said the supply is safe until end of next week . Is it the same for you that visibility is just poor for you as well ?

Horst Schneider: Is your supply safe until when Volkswagen said the supply is safe until end of next week? Is it the same for you, that visibility is just poor for you as well?

Opportunity does that provide for you what kind of upside is that unlocked one of your.

The three competitor is in on the retro, saying that this is a multibillion dollar opportunity.

Speaker #3: So we are monitoring day by day on daily basis . The chip , the cheap situation from Nexperia . We have a cross-functional war room in the building where I'm sitting that has this as primary job .

Antonio Filosa: We are monitoring day by day on a daily basis the chip situation from next period. We have a cross-functional war room in the building where I'm sitting that has this as its primary job. Every day we are pushing actions and projects to extend our period. This is a day by day management of what is an industry-wide global issue.

Would you plan to take advantage of it.

Okay.

Okay very good. Thank you Juan Manuel for your two questions I will start answering and then I will leave the stage to talk to you all.

Antonio Filosa: Okay. Very good. Thank you, Emmanuel, for your two questions. I will start answering. Then I will leave the stage to João. Obviously, the new regulation that, in our point of view, are very pragmatic and are giving back the US customer their freedom of choice, we welcome them very well. We believe those represent to us very good news for the short, mid, and long term. We intend to explore all the value that we can extract out of those through mix. In our product offer that we are implementing since January, freedom of choice is the mantra of our strategy. We are still a lot developing beautiful BEV vehicles for the customer that will prefer a BEV. That's why we are launching Jeep Recon very soon in half one 2026. Also, we are enlarging our lineup with IZ introduction, hybrids introduction.

Speaker #3: And every day we are pushing actions and projects to to extend our our period . So this is a management a day by day management of what is a industry wide global issue .

So obviously, the new regulation that in our point of view are very pragmatic and giving back.

The U S customers' data freedom of choice, we welcome them very well, we believe those represent to US a very good news for the short mid and long term and we intend to explore all the value that.

Speaker #11: Yes . All right . Thank you . All the best .

[Analyst 2]: Yes.

Horst Schneider: All right, thank you. All the best.

Speaker #3: Thank you . Thank you very much .

Antonio Filosa: Thank you. Thank you very much.

Speaker #1: The next question comes from Emmanuel Rosner from Wolfe Research . Please go ahead .

Operator: The next question comes from Emmanuel Rosner from Wolfe Research. Please go ahead.

That weekend of Stroud total doors.

Speaker #5: A great thanks .

Through mix.

Joao Larango: Great.

Speaker #12: Thanks for taking my questions . The first one is just a point of clarification . These charges that you're taking in the second half , both for , I guess , turnaround actions , but also for warranty .

[Analyst 1]: Thanks for taking my questions. The first one is just a point of clarification. These charges that you're taking in the second half both for I guess turnaround actions but also for warranty. Can you just confirm again if there's any sort of cash impact that you should be thinking about associated with it and whether that would be included in the free cash flow, reiterated guidance.

And our product offer that we are implementing the since January.

So these are more choice is the main pillar of our strategy.

We are still.

Got the Velo Big beautiful B the vehicles for the customer that boules will prefer EBV.

Speaker #12: Can you just confirm again if there's any sort of cash impact that you should be thinking about associated with it and whether that would be included in the free cash flow , reiterated guidance .

That's why we are launching the gib recon very soon in half one 2026.

But also we.

We are in a lot of gene Gallois lineup with Z introduction.

Speaker #12: And then just maybe a little bit longer term , you know , with this changes in US regulations and in particular significant easing in the emissions regulations , what kind of opportunity does that provide for you ?

Antonio Filosa: Maybe a little bit longer.

[Analyst 1]: Term, with these changes in U.S. regulations and in particular significant easing in the emissions regulations, what kind of opportunity does that provide for you? What kind of upside does that unlock? One of your D3 competitors on the record saying that this is a multibillion dollar opportunity. How would you plan to take advantage of it?

I believe its introduction this is the portion of the industry that is growing.

Antonio Filosa: This is the portion of the industry that is growing fast, the fastest one in the U.S. Our first car will be the Jeep Cherokee full hybrid and range-extended introduction. This is very pioneeristic. We will be the first in the industry to launch in the U.S. a range-extended powertrain for a pickup truck but also for a large SUV while we keep our leadership at Stellantis in the PHEV. Really, freedom of choice is at the basis of the new strategy that we are implementing since January this year, again, in answer to the past strategic decision that we believe was important to correct, right? This change of strategy is triggering the charges that João will detail a little bit.

Fast the fastest one in the U S and our first quarter will be the Jeep Cherokee pool Ibrutinib.

Speaker #12: What kind of upside does that unlock ? One of your D3 competitor is in on the record saying that this is a multibillion dollar opportunity .

And Ranger standard introduction. This is very Bioterroristic, we will be the first in the industry. The launching U S. A range extended powertrains or a pickup truck, but also for the large SUV.

Speaker #12: How would you plan to take advantage of it?

Speaker #3: Okay . Very good . Thank you , Emmanuel , for your two questions . I will start answering and then I will leave the the stage to to to Joao .

Why do we keep our leadership as the land is in the <unk>. So really freedom of choice is at the basis of a digital strategy that we are implementing since January this year.

Antonio Filosa: Okay, very good and thank you Emmanuel for your two questions. I will start answering and then I will leave the stage to Joao. Obviously, the new regulation that in our point of view are very pragmatic and are giving back the U.S. customers their freedom of choice. We welcome them very well. We believe those represent to us very good news for the short, mid, and long term and we intend to explore all the value that we can extract out of those through mix. In our product offer that we are implementing since January, freedom of choice is the mantra of our strategy. We are still a lot developing beautiful BEV vehicles for the customer that will prefer a BEV. That's why we are launching a Jeep Recon very soon in H1 2026, but also we are enlarging our lineup with IZ introduction, hybrids introduction.

Speaker #3: So obviously the new regulation that in our point of view are very pragmatic and are giving back the US customers their freedom of choice .

Jim.

In the in answer to the past decision strategic decision that we believe was important too to correct right and this change of strategy is triggering the charges that they draw with the deal a little bit.

Speaker #3: We welcome them very well . We believe those represent to us a very good news for the short , medium and long term .

Thank you Anton and higher Manuel.

Speaker #3: And we intend to explore all the value that we can extract out of those through mix . So in our product offer that we are implementing , since January , freedom of choice is the mantra of our strategy .

João Laranjo: Thank you, Antonio. Hi, Emmanuel. The strategic review and the product plan reviews that we are undertaking would lead possibly to project cancellations as we have already communicated the light-duty BEV here in the US. The type of adjustments that we should expect on the product cancellations would be write-off of CapEx and R&D capitalized spend and also other program cancellations costs. Those other program cancellation costs, they could have a cash impact, which we would expect to have limited cash impact in 2025 and more into the future.

So the.

The reviews of the strategic review and the product planned reveals that we are.

Undertaking wood.

Would lead ultimately to.

Project cancellations as we have already communicated.

Speaker #3: We are still a lot developing beautiful Bev vehicles for the customer that will will prefer a BV . That's why we are launching Jeep Recon very soon .

Light duty Bev here in U S.

India type.

Type of adjustments that we should expect on the program.

Cancellations would it be.

Write off of Capex and R&D.

Speaker #3: In half one 2026 . But also we are enlarging our line up with is introduction hybrids . Introduction . This is the portion of the industry that is growing fast .

Capitalized expand.

And also other program cancellations caused zander those auto program cancellation costs.

Antonio Filosa: This is the portion of the industry that is growing fast, the fastest one in the U.S., and our first car will be the Jeep Cherokee full hybrid and range extended introduction. This is very pioneeristic. We will be the first in the industry to launch in the U.S. a range extended powertrain for a pickup truck, but also for a large SUV. Why do we keep our leadership as Stellantis in the PHEV? Really, freedom of choice is at the basis of the new strategy that we are implementing since January this year, again in answer to the past decision, strategic decision that we believe was important to correct. This change of strategy is triggering the charges that Joao will detail a little bit.

They could have a cash impact, which we expect to have limited cashing back in 'twenty, five and more into the future.

Speaker #3: The fastest one in the US and our first car will be the Jeep Cherokee , full Hybrid and Ranger standing . Introduction . This is a very pioneering .

Speaker #3: We will be the first in the industry to launch in US a range extended powertrain for a pick up truck , but also for a large SUV .

Ladies and gentlemen, this was the last question with this I'm handing over back to Antonio Filosa still Lantus CEO for his closing remarks.

Operator: Ladies and gentlemen, this was the last question. With this, I am handing over back to Antonio Filosa, Stellantis CEO, for his closing remarks.

Speaker #3: While we keep our leadership as Stellantis in the Phev . So really freedom of choice is at the basis of the new strategy that we are implementing .

Well.

Thank you and thank you everyone for your time and focus on the cell anti story.

Antonio Filosa: Well, thank you. Thank you, everyone, for your time and focus on the Stellantis story. It was a privilege to update you on the company's commercial progress and its return to top-line growth. Talk about why the investment in the US and the strategic updates we are making are so important and reiterate our guidance, framing continued sequential improvement quarter by quarter. I look forward to updating you on our progress in the coming months and quarters. Thank you, everyone.

Speaker #3: Since January this year . Again , in in answer to the past decisions , strategic decision that we believe was important to to .

It was a privilege to update you on the company's commercial progress.

And it's a return to top line growth.

Speaker #3: Correct. Right. And this change of strategy is triggering the charges that João will deal with a little bit.

Think about why the investment in the U S and the strategic updates we are making are so important.

And right a read our guidance cleaning continued sequential improvement quarter by quarter.

Speaker #4: Thank you . Antonio . And Manuel , the so the the reviews , the strategic review and the product plan reviews that we are undertaking would lead possibly to project cancellations as we have already communicated the the light duty bev here in the US and the type of adjustments that we should expect on the programme .

Joao Larango: Thank you, Antonio, and hi Emmanuel. The reviews, the strategic review, and the product plan reviews that we are undertaking would lead possibly to project cancellations as we have already communicated the light duty BEV here in the U.S., and the type of adjustments that we should expect on the program product cancellations would be a write-off of CapEx and R&D capitalized spend, and also other program cancellation costs. Those other program cancellation costs could have cash impact, which we would expect to have limited cash impact in 2025 and more into the future.

I look forward to updating you on our progress in the coming months and quarters. Thank you everyone.

Speaker #4: Product cancellations would be right off of CapEx and R&D capitalized spend . And also other program cancellations , costs and those other program cancellation costs .

Speaker #4: They they could have cash impact , which we would expect to have limited cash impact in 25 and more into the future .

Speaker #1: Ladies and gentlemen , this was the last question . With this , I am handing over back to Antonio Filosa Stellantis CEO for his closing remarks .

Operator: Ladies and gentlemen, this was the last question. With this, I am handing over back to Antonio Filosa, Stellantis CEO, for his closing remarks.

Speaker #3: Well , thank you and thank you , everyone for your time and focus on Stellantis story . It was a privilege to update you on the company's commercial progress and its return to top line growth .

Antonio Filosa: Thank you, thank you everyone for your time and focus on the Stellantis story. It was a privilege to update you on the company's commercial progress and its return to top line growth. I talk about why the investment in the U.S. and the strategic updates we are making are so important and reiterate our guidance framing continued sequential improvement quarter by quarter. I look forward to updating you on our progress in the coming months and quarters. Thank you, everyone.

Speaker #3: Talk about why the investment in the US and the strategic updates we are making are so important , and reiterate our guidance , framing continued sequential improvement quarter by quarter .

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