Global automaker Stellantis N.V. is preparing a major strategic shift that will concentrate investment on its core brands, as new Chief Executive Officer Antonio Filosa pushes a turnaround plan aimed at restoring profitability and market share, according to sources familiar with the matter.

Stellantis is set to recall up to around 700,000 vehicles worldwide due to a fire risk affecting multiple models across its global lineup, the company confirmed on Wednesday.

Stellantis’ vehicle production in Italy fell sharply in 2025, declining 20% year on year to 379,706 units, according to figures released on Wednesday by the FIM Cisl trade union.

Car giant Stellantis, which owns brands including Jeep, Fiat, and Vauxhall, says US tariffs introduced by President Donald Trump have already cost the company €300 million (£259.6m, $349.2m).

Stellantis CEO Carlos Tavares abruptly resigned on Sunday, just two months after the company issued a profit warning. The maker of Jeep, Fiat, and Peugeot cars has seen its value drop by around 40% this year.