Stellantis has announced one of the largest financial resets in automotive history, taking a massive $26 billion hit as it retreats from its electric vehicle (EV) plans and exits a major battery partnership in Canada.
The automaker, which owns brands including Jeep, Ram, Chrysler, Fiat, and Dodge, revealed the writedown as part of a sweeping overhaul of its business strategy released on Friday. The charges are primarily tied to cancelled EV programs, supply chain adjustments, and restructuring costs after the company overestimated how quickly consumers would shift to electric vehicles.
Stellantis CEO Antonio Filosa acknowledged the miscalculation, saying the company’s previous strategy was based on overly optimistic assumptions about EV adoption.
“The moves largely reflect the cost of over-estimating the pace of the energy transition,” Filosa said in a statement.
He added that the changes mark a broader effort to reset the company’s direction after years of operational and strategic missteps.
“What we are announcing today is an important strategic reset of our business model… to put our customer preferences back at the center of what we do, globally and in each region,” Filosa said.
The company had previously committed to selling only EVs in Europe and reaching 50% EV sales in the United States by 2030. However, slowing consumer demand, affordability concerns, and policy changes—including the removal of EV incentives in some markets—have forced a u-turn.
As part of the restructuring, Stellantis is also exiting its joint venture with LG Energy Solution in Windsor, Ontario. The partnership, announced in 2022, aimed to build one of Canada’s largest EV battery factories under the NextStar Energy name, backed by more than $5 billion in investment. LG Energy Solution is now acquiring Stellantis’ stake, taking full ownership of the facility.
The Windsor plant is expected to continue producing batteries, potentially supplying both Stellantis and other manufacturers, as LG pivots toward broader energy storage opportunities.
With the reset, the company is projecting a net loss of up to €21 billion (C$31 billion) for the second half of 2025 and does not plan to issue a dividend this year. Its shares plunged more than 20% following the announcement, wiping billions off its market value.
Despite the retreat from EV targets, Stellantis says it will continue investing heavily in North America, including plans to inject $13 billion into U.S. operations. The company has also revived internal combustion engine programs, including bringing back V8 engines for Ram trucks, as it attempts to regain market share.
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