By Giulio Piovaccari
MILAN, Feb 6 (Reuters) – Stellantis announced 22.2 billion euros ($26.5 billion) of charges on Friday as it scales back its electric-vehicle ambitions, hammering its shares as automakers pay the price of misjudging the switch to cleaner driving.
The move follows similar, albeit smaller, writedowns by rivals including Ford and General Motors as many Western automakers retreat from battery-powered models in response to the Trump administration’s policies and soft demand.
Milan-listed shares in Stellantis were down 19% in early trading.
“The Company has taken the vast majority of decisions required to correct direction, particularly related to aligning our product plans and portfolio with market demand,” Stellantis – which will present its new business plan in May – said in a statement.
The charges, which will be booked in results for the second half of 2025 – include cash payments of approximately 6.5 billion euros expected to be made over the next four years, it added.
CEO Antonio Filosa started downsizing the Fiat to Jeep maker’s EV ambitions last year when he took the helm, after previous boss Carlos Tavares’ strong bet on electrification resulted in a protracted sales decline in Europe and in the group’s former profit powerhouse, the North American market.
As part of this strategy, the Italian-French-American group on Thursday also agreed to sell its 49% stake in a battery joint venture in Canada to South Korean partner LG Energy Solution.
Due to the writedowns, Stellantis now expects a preliminary loss of between 19 billion and 21 billion euros in the second half of 2025 and will not pay a divided this year.
The group will also issue up to 5 billion euros in non-convertible subordinated perpetual hybrid bonds.
“These actions will contribute to preserving a strong balance sheet, with approximately 46 billion euros in industrial available liquidity at year-end,” it said.
Stellantis will release final second half and full-year 2025 results on February 26.
($1 = 0.8477 euros)
(Reporting by Giulio Piovaccari. Editing by Gavin Jones and Mark |Potter)
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