London – Stellantis, the automaker behind brands including Jeep and Chrysler, announced a sweeping “reset” of its business on Friday after massive investments in electric vehicles failed to deliver the expected returns.
The company said it will take charges exceeding €22 billion ($26.2 billion), largely tied to write-downs and cash costs associated with canceled EV programs and the restructuring of its electric-vehicle supply chain.
The move rattled investors. Stellantis shares plunged as much as 30% following the announcement.
The strategy overhaul mirrors similarly costly pullbacks by Ford and General Motors in recent weeks, as major automakers reassess aggressive EV expansion plans.
US carmakers had poured billions into electrification in response to strict emissions rules introduced under the Biden administration, as well as expectations that more states would follow California’s lead in banning sales of new gasoline-powered vehicles within the next decade.
Those assumptions have since shifted. The Trump administration has rolled back federal emissions regulations, cut financial support for EV adoption and challenged states’ authority to impose stricter environmental standards.
Commenting on the charges, Stellantis CEO Antonio Filosa said they “largely reflect the cost of overestimating the pace of the energy transition.”
In a statement, the company added that the shift to electric vehicles “needs to be governed by demand rather than command.”
“Stellantis is committed to being a beacon for freedom of choice,” the company said, emphasizing that its growing lineup of hybrid and advanced internal combustion engine vehicles remains better suited for some customers’ lifestyles and work needs.
Highlighting its weaker outlook for EV demand, Stellantis said the largest portion of the charges — €14.7 billion ($17.37 billion) — relates to “realigning product plans with customer preferences and new emission regulations in the United States.”
Although Stellantis is scheduled to report its full 2025 earnings on February 26, the company disclosed on Friday that it recorded a net loss for the year and will not pay an annual dividend in 2026 as a result.
Filosa struck a more hopeful tone for the period ahead, telling analysts on an earnings call that Stellantis expects to remain profitable throughout 2026.
Regulatory shifts in Europe have also clouded the outlook for EV adoption. The European Union had planned to ban the sale of new internal combustion engine vehicles by 2035, but in December the bloc softened the proposal following pressure from automakers. Under the revised plan, the ban would apply to only 90% of new vehicles, allowing the remaining 10% to be plug-in hybrids or vehicles powered by combustion engines.
Consumer demand has also lagged expectations. European appetite for EVs has been weaker than manufacturers anticipated, a problem compounded by uneven charging infrastructure across the continent.
Assessing the environmental impact of vehicles is complex, as emissions must be measured across a car’s entire life cycle, including manufacturing.
Gas-powered cars, hybrids and EVs produce similar emissions during production — until battery manufacturing is factored in. Large EV batteries rely on materials that require extensive mining, making electric vehicles about 40% more carbon-intensive to produce than gas or hybrid models, according to one study.
Over a vehicle’s full lifespan, however, the balance shifts. Gas-powered cars are the cleanest to manufacture but the most polluting to operate due to tailpipe emissions. EVs, while dirtier to build, generate the least lifetime emissions — roughly 40% less than gasoline-powered vehicles.
