Stellantis announced a staggering US$26.5 billion in write-downs as part of a significant reduction in its electric vehicle (EV) ambitions, positioning itself as the leader among the Detroit automakers in terms of losses. This announcement, made on February 2, 2026, has sent shockwaves through the market, plunging the company’s shares by 19% in early trading on the Milan Stock Exchange.
The write-downs, predominantly booked for the second half of 2025, include US$6.5 billion in cash payments slated over the next four years. Additionally, Stellantis anticipates a considerable net loss of between US$19 billion and US$21 billion for the latter half of 2025, prompting the decision to suspend dividends for the year. To preserve liquidity, the automaker plans to issue up to US$5 billion in non-convertible bonds, maintaining approximately US$46 billion in available funds.
In his statement, Chief Executive Antonio Filosa emphasized the company’s struggle with overestimating the pace of the energy transition and acknowledged poor operational execution that affected customer alignment. Special focus was given to the previous leadership under Carlos Tavares, who resigned in late 2024 after facing significant dissent regarding Stellantis’ direction.
Shifting Priorities and Financial Impact
Almost US$15 billion of the write-downs will be dedicated to realigning product development in response to changing customer expectations and regulatory adjustments in the U.S. This recalibration has led to the cancellation of several EV projects, including the Ram 1500 electric truck, which was once heralded as a groundbreaking innovation.
Other Detroit automakers have also faced substantial write-downs. In December 2025, Ford reported a US$19.5 billion loss following the cancellation of several EV models, including the F-150 Lightning. General Motors revealed US$7.6 billion in write-offs, primarily due to asset devaluations and contract cancellations with suppliers, particularly in the battery sector.
While Stellantis grapples with its substantial losses, the European EV market has seen growth, buoyed by purchasing incentives and the influx of new competition from Chinese manufacturers. Stellantis’ decision to shift its focus away from purely electric models aims to cater to a broader range of customer preferences, including hybrid and advanced internal combustion engine vehicles.
Strategic Changes and Future Plans
In a bid to regain market traction, Stellantis plans to unveil a new business strategy in May 2026. The company has already initiated measures to address operational shortfalls by expanding its engineering workforce and investing €13 billion over four years to boost U.S. production capacity and create over 5,000 jobs.
The automaker announced that initial actions have begun to pay dividends, with an 11% increase in consolidated shipment volumes in the second half of 2025. North America has been a significant contributor to this resurgence, with growing customer orders and improved inventory management.
Filosa reiterated Stellantis’ commitment to aligning its product offerings with customer demands and emphasized the need for a diversified strategy that includes hybrids and internal combustion engines. He expressed optimism about the long-term sustainability of the new approach, asserting, “We have gone deep into every corner of our business… to drive profitable growth.”
