Stellantis writes off €22.2 billion in electric vehicle business

Stellantis CEO Antonio Filosa has been working since his appointment in June 2025 to scale back the ambitious electric vehicle targets set by his predecessor, Carlos Tavares. As part of this effort, he has cancelled plans for products that the company deemed unable to achieve profitable volumes. These include the previously planned battery-electric version of the pickup truck Ram 1500. According to Stellantis, customer demand and changes in US regulations do not support such vehicles. That is likely due to factors such as the expiry of the $7,500 tax credit at the end of September and the relaxed emissions rules for internal combustion engines introduced by the Trump administration.

As a result, Stellantis is realigning its business model and plans to announce a new strategic plan in May. It is already clear that the company will focus exclusively on customer demand in the field of electric mobility. Additionally, in a separate move, it is divesting its stake in the battery joint venture NextStar Energy with LG Energy Solution.

Beyond this, the group, which includes 14 brands such as Chrysler, Dodge, Fiat, Opel, Peugeot, and RAM, aims to become a ‘beacon for freedom of choice,’ particularly ‘those customers whose lifestyles and working requirements make the Company’s growing range of hybrid and advanced internal combustion engine vehicles the right solution for them,’ Stellantis said.

Pace of energy transition overestimated

In preparation for this realignment, Stellantis is recording impairments totalling approximately 22.2 billion euros. “The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires,” said Stellantis CEO Antonio Filosa. “They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new team.”

The total of 22.2 billion euros comprises 14.7 billion euros related to the realignment of product plans to align with customer preferences and new emissions regulations in the US. That is primarily due to significantly reduced expectations for battery-electric vehicle products. Within these 14.7 billion euros, there are impairments of 2.9 billion euros on cancelled products and 6.0 billion euros in platform write-downs, mainly due to sharply reduced volume and profitability expectations. Additionally, it includes expected cash outflows of around 5.8 billion euros over the next four years, relating to both cancelled products and other ongoing BEV products whose sales volumes are now expected to fall significantly short of previous forecasts.

Electric vehicle supply chain affected

A further 2.1 billion euros are associated with the restructuring of the electric vehicle supply chain. This includes cash outflows of approximately 0.7 billion euros expected over the next four years, linked to measures to rationalise battery production capacities.

The remaining 5.4 billion euros arise from other changes in the company’s operations. This includes 4.1 billion euros due to a revised estimate for contractual warranty provisions, as well as other expenses totalling 1.3 billion euros. These are primarily related to restructuring costs associated with previously announced job reductions across wider Europe.

Stock market plunge

The announcement of the impairments sent shockwaves through the stock market: Stellantis shares plunged by 25%, having already been under pressure. Since the beginning of 2025, the stock has lost 50% of its value. The group is currently valued at just 17.5 billion euros on the stock market.

The sharply negative reaction from investors is also due to Stellantis now expecting a loss of between 19 and 21 billion euros for the second half of 2025. Additionally, Stellantis has announced that it will not pay a dividend for 2025.

With its realignment and significant write-downs in the EV business, Stellantis is following the example of Ford and General Motors. In December, Ford announced impairments totalling $19.5 billion, primarily due to the realignment of its EV business. Meanwhile, General Motors announced a write-down of 6 billion dollars in January, less than three months after GM had already written off 1.6 billion US dollars in October. This was mainly due to dampened demand expectations for electric vehicles following the phase-out of EV incentives in the US.

stellantis.com, manager-magazin.de (in German)