Stellantis Takes $26 Billion Hit in EV Reset

Stellantis CEO Antonio Filosa said the charges stem from overestimating the pace of the energy transition and misreading consumer demand.

The Ram 1500 Revolution electric battery-powered pickup truck is displayed on stage during an event in Las Vegas, Nev. John Locher/AP Photo

Stellantis has announced it will take about 22.2 billion euros ($26 billion) in charges after overestimating the pace of the electric-vehicle (EV) transition, as the Jeep and Chrysler parent resets its strategy to focus more heavily on hybrids and gasoline-powered models alongside EVs.

The move, announced in a Feb. 6 company statement, comes as the company grapples with uneven consumer demand for battery EVs in the United States and Europe. Stellantis’s rivals, General Motors and Ford, have announced similar measures in recent months.

General Motors said on Jan. 8 it would take $7.1 billion in special charges in the fourth quarter of 2025 after pulling back from EVs. Ford said in December 2025 that it would take a $19.5 billion writedown after discontinuing several electric models.

Stellantis CEO Antonio Filosa said on Feb. 6 that the announced charges “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.”

He added that the company is addressing deteriorating quality performance resulting from prior operational decisions.

Stellantis said its revised strategy will put what it calls “freedom of choice” at the center of its plans, expanding offerings of hybrids and advanced internal combustion engines alongside EVs.

Of the total, 14.7 billion euros ($17.3 billion) relate to aligning product plans with customer preferences and new U.S. emissions regulations, primarily reflecting reduced expectations for battery-electric vehicle volumes and profitability.

That figure includes 2.9 billion euros ($3.4 billion) in write-offs tied to canceled products and 6 billion euros ($7 billion) in platform impairments.

It also includes roughly 5.8 billion euros ($6.8 billion) in projected cash payments over the next four years connected to canceled and ongoing EV programs now expected to sell in lower volumes.

Another 2.1 billion euros ($2.4 billion) is linked to resizing the EV supply chain, including 700 million euros ($827,5 million) in anticipated cash payments over four years tied to rationalizing battery manufacturing capacity.

The remaining 5.4 billion euros ($6.3 billion) relates to operational changes. The rest includes restructuring costs, mainly workforce reductions in Europe.

Citing its net loss for 2025, Stellantis said it would not pay an annual dividend in 2026. The board also authorized up to 5 billion euros in nonconvertible subordinated perpetual hybrid bonds to bolster liquidity.

Despite ongoing regulatory uncertainty in Europe and a challenging industry environment, Stellantis said it expects to improve net revenues, adjusted operating income margin, and cash generation in 2026, with sequential gains from the first half to the second.

Filosa said that the reset is part of a process begun in 2025 “to once again make our customers and their preferences our guiding star.” Full-year 2025 results are scheduled for release on Feb. 26, 2026.