economy
February 6, 2026
Stellantis takes €22bn hit after ‘overestimating’ pace of shift to EVs
Carmaker, which owns marques including Peugeot and Jeep, will also sell stake in battery joint venture
TL;DR
- Stellantis is taking a €22bn charge and selling a stake in its battery joint venture.
- The company admits to overestimating the pace of the shift to electric vehicles.
- Charges largely reflect the cost of overestimating the energy transition's pace and poor operational execution.
- Shares plunged 25% in Milan, wiping nearly €6bn off its market value.
- Nearly €15bn of charges relate to aligning product plans with customer preferences and US emission regulations.
- Stellantis will not pay a dividend to shareholders in 2026.
- The company has cancelled projects, including the electric Ram 1500 truck.
- Demand for EVs in the US has collapsed after the Trump administration withdrew consumer tax credits and is looking to remove emission regulations.
- Stellantis plans to sell its 49% stake in its Canadian battery joint venture to LG Energy Solution.
- Analysts believe Stellantis may need to consider factory closures and output reductions.
- Rival carmakers Ford and General Motors have also announced significant charges related to their EV plans.
Continue reading the original article