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Stellantis said it would take a €22bn charge and offload a stake in its battery joint venture as it scaled back its push into electric vehicles and admitted that it “overestimated the pace of the energy transition”.
The European carmaker on Friday said a “reset” of its business would lead to the €22.2bn charge in the second half of its 2025 financial year, and said it would not pay a dividend in 2026.
Stellantis also sold its 49 per cent equity stake in its battery joint venture in Canada with NextStar Energy to South Korea’s LG Energy Solution.
Analysts had long anticipated the group, which owns the Peugeot, Fiat and Jeep brands, to follow with a writedown after Detroit rival Ford announced a $19.5bn charge while GM recently disclosed a $6bn hit.
“The charges announced today largely reflect the cost of overestimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires,” said Stellantis chief executive Antonio Filosa.
The global car industry has wrestled with the costly investments in EVs, changing climate regulations and the slower than expected transition among consumers.
While sales of EVs surged to a record last year in Europe, demand collapsed in the US after the Trump administration withdrew a $7,500 consumer tax credit, while the government is seeking to roll back regulations aimed at curbing car emissions.