Stellantis, owner of Jeep and Chrysler, has begun a major operational restructure after poor returns from electric vehicle investments.
On Friday, it disclosed impairment charges over $26 billion, mainly from cancelled EV projects, supply chain changes, and €6.5 billion in payments over four years. Shares (STLA) fell by up to 30 per cent. Ford and General Motors have made similar costly shifts recently.
U.S. firms boosted EV spending under Biden emissions rules, expecting states to follow California’s petrol car sales ban. The Trump administration axed these standards, subsidies, and state powers.
Stellantis CEO Antonio Filosa said the €22.2 billion charges “largely reflect the cost of over-estimating the pace of the energy transition.”
The company’s statement noted the EV shift “needs to be governed by demand rather than command.”
“Stellantis is committed to being a beacon for freedom of choice, including for 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,” it added.
Provisions of €14.7 billion realign products for U.S. tastes and new rules, including €2.9 billion in write-offs.
Ahead of 26 February results, Stellantis posted a 2025 net loss and skipped the 2026 dividend. Liquidity remains at €46 billion with new bonds. It plans a $13 billion U.S. investment, 10 launches with HEMI engines, 5,000 jobs, and selling its battery stake to LG Energy Solution.
A new strategy targets mid-single-digit growth next year. Europe’s EU softened its 2035 engine ban to 90 per cent of sales. EV demand stays weak with poor charging networks.
Production emissions match for petrol, hybrids, and EVs until batteries; EVs are 40 per cent dirtier to make due to mining. Over lifetimes, EVs emit 40 per cent less carbon than petrol cars.