Stellantis Takes $26.2 Billion Charge, Resets EV Strategy
Stellantis will take a €22.2 billion ($26.2 billion) write-down as it shifts away from aggressive EV plans, the company said Feb. 6.
Overview
Stellantis said in a Feb. 6 statement that it will take a €22.2 billion ($26.2 billion) charge to reset its business after overestimating the pace of the electric-vehicle transition.
Stellantis CEO Antonio Filosa said the charges reflect overestimating the energy transition and prior poor operational execution, according to the company statement.
Stellantis shares plunged on the news, with market data showing a 20% drop while intraday trading records showed a decline of more than 28%, reflecting conflicting reports.
Stellantis said the charges include $3.4 billion canceled products, $7.1 billion platforms, $6.8 billion cash obligations over four years, $2.5 billion supply‑chain resizing, $1.5 billion European layoffs and $4.8 billion warranties.
Stellantis said it will invest $13 billion in the U.S., add 5,000 jobs and pivot to more trucks, SUVs and gasoline models including a V8 Ram 1500 and a gas Dodge Charger.
Analysis
Center-leaning sources frame the story as a cautionary backlash against rapid electrification, using loaded language and partisan causation. They emphasize regulatory rollbacks after the 2024 election and underwhelming EVs, highlight costs, and pick vivid adjectives ('revanchists', 'bizarrely', 'reality bites') and selective comparisons to Ford/GM to underscore Stellantis' misstep.
Sources (4)
FAQ
The charges include $3.4 billion for canceled products, $7.1 billion for platforms, $6.8 billion in cash obligations over four years, $2.5 billion for supply-chain resizing, $1.5 billion for European layoffs, and $4.8 billion for warranties.
Stellantis overestimated the pace of the EV transition, misjudged consumer demand, and faced changes in U.S. regulatory frameworks, prompting a pivot to hybrids, trucks, SUVs, and gasoline models to align with customer preferences.
Stellantis will invest $13 billion in the U.S., add 5,000 jobs, and introduce models like a V8 Ram 1500, gas Dodge Charger, Dodge Charger SIXPACK, Fiat Grande Panda and 500 Hybrid, and Citroën C3 Aircross and C5 Aircross, while canceling unprofitable EVs like the Ram 1500 BEV.
Stellantis shares plunged, dropping 20% with intraday declines exceeding 28%.
Antonio Filosa, who took over last summer, stated the charges reflect overestimating the energy transition and prior poor execution, describing it as a strategic reset to prioritize customer preferences.
History
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