Stellantis said Friday it would impose a $26.5 billion charge as the automaker cuts spending. electric vehicle (EV) production, joining other manufacturers who suffered a financial hit after misjudging consumer demand for electric vehicles.
Stellantis – the parent company of brands such as Chrysler, Jeep, Dodge and Ram – has become the latest automaker to take the lead. The $26.5 billion fee is higher than what Ford and General Motors took following the end of federal subsidies for electric vehicles.
The automaker had set ambitious electric vehicle goals under its former CEO, Carlos Tavares, who aimed for electric vehicles to account for 100% of European sales and 50% of U.S. sales by 2030. Tavares was forced to step down in 2024 after sales fell in the United States, where Stellantis is exposed due to its reliance on sales of high-margin Jeep and Ram pickup trucks.
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A Fiat 500e all-electric vehicle from the 2026 model year. (Stellar)
Across the auto industry, fully electric vehicles accounted for 19.5% of European sales last year and just 7.7% of new car sales in the United States.
CEO Antonio Filosawho took over as CEO of Stellantis last summer, said in a call with reporters that the company’s past assumptions about demand for electric vehicles were “overly optimistic” and emphasized: “What we’re announcing today is a significant strategic reset of our business model… to put our customers’ preferences back at the center of what we do, globally and in every region.”
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Teleprinter Security Last Change Change % STLA STELLANTIS SA 7.21 -2.32 -24.33% Stellantis’ accusationswhich were counted in the company’s results for the second half of 2025, also reflect quality issues that Filosa blamed on cost cuts under Tavares, which he said pushed the automaker to hire 2,000 engineers globally.
The charges also included reductions in the company’s electric vehicle supply chain, revised assumptions for warranty provisions due to poor product quality, as well as previously announced costs. job cuts in Europe.
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Stellantis is a multinational automobile manufacturer with brands ranging from Fiat and Maserati to Chrysler, Jeep and Dodge. (Geoff Robins/AFP via Getty Images)
Ross Mould, investment director at AJ Bell, said the write-down showed Stellantis “got it wrong about how quickly the world would move from combustion engines to electric power”.
Mold added that the success of Chinese EV makers like BYD “raises the question of whether Stellantis’ frustration with its EV sales is related to market issues or whether drivers simply don’t like its vehicles.”
Stellantis shares sank on the news, with the company’s New York-traded shares falling more than 22% during Friday’s trading session.
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The multinational automaker – which includes American, French and Italian car brands – saw its Milan-traded shares fall more than 23%.
Stellantis forecasts a high-single-digit increase in net revenue for 2026, along with a high-single-digit adjusted operating profit margin. It forecasts positive industrial free cash flow in 2027. The company will also not pay a dividend this year.
Reuters contributed to this report.