Stellantis said it is recording impairments and charges totalling about €22.2 billion, largely linked to its electric vehicle business, as new chief executive Antonio Filosa moves to scale back the group’s previously ambitious electrification strategy and refocus on customer demand.
Filosa, who took over as CEO in June 2025, has been reassessing targets set under former chief executive Carlos Tavares, cancelling products deemed unlikely to achieve profitable volumes. Among them is a planned battery-electric version of the Ram 1500 pickup, which Stellantis said no longer aligns with market demand or the current U.S. regulatory environment. The shift follows the expiry of the $7,500 U.S. EV tax credit in late 2025 and looser emissions rules for combustion engines under the Trump administration.
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Stellantis said it will outline a new strategic plan in May, centred on what it calls a “beacon of freedom of choice,” expanding offerings of hybrid and advanced internal combustion engine vehicles alongside electric models. The group, which owns 14 brands including Chrysler, Dodge, Fiat, Opel, Peugeot and Ram, said it will now base its electrification plans strictly on customer demand rather than fixed targets.
“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,” Filosa said. He added that the charges also reflect the impact of past operational shortcomings that the new management team is working to address.
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Of the €22.2 billion total, €14.7 billion relates to the realignment of product plans to reflect revised demand expectations and U.S. emissions rules. That includes €2.9 billion in impairments on cancelled products and €6.0 billion in write-downs of vehicle platforms due to sharply lower volume and profitability assumptions. Stellantis also expects cash outflows of about €5.8 billion over the next four years tied to cancelled projects and underperforming battery-electric vehicle programmes.
A further €2.1 billion is linked to restructuring the electric vehicle supply chain, including around €0.7 billion in expected cash outflows over four years to rationalise battery production capacity. The remaining €5.4 billion stems from other operational adjustments, including €4.1 billion related to higher warranty provisions and €1.3 billion in restructuring costs, largely associated with previously announced job cuts across Europe.
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The announcement triggered a sharp sell-off in Stellantis shares, which fell about 25% on the day. The stock has lost roughly half its value since the start of 2025, leaving the group with a market capitalisation of around €17.5 billion. Stellantis also said it now expects a loss of between €19 billion and €21 billion in the second half of 2025 and will not pay a dividend for the year.
Stellantis’ move mirrors similar actions by U.S. rivals Ford Motor and General Motors, which have both announced multi-billion-dollar write-downs in recent months as they reassessed electric vehicle strategies amid softer demand and reduced incentives.
