Stellantis announced on Friday a €22.2 billion ($25.9 billion) charge to reset its business, with management acknowledging the automaker overestimated the pace of the electric vehicle transition.
The charges, excluded from adjusted operating income for the second half of 2025, include approximately €6.5 billion in cash payments expected over the next four years.
The company announced that it will suspend its dividend in 2026 as a result of the 2025 net loss.
“The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires,” chief executive Antonio Filosa said.
“They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new Team,” Filosa added.
Stellantis will release full-year 2025 financial results later this month, on February 26. The company plans to present its new strategic plan at an investor day on May 21.
The bulk of the writedown — €14.7 billion — relates to realigning product plans with customer preferences and new US emissions regulations, largely reflecting what Stellantis described as “significantly reduced expectations for BEV products.”
This includes €2.9 billion in write-offs for cancelled products and €6.0 billion in platform impairments due to sharply lower volume and profitability expectations.
An additional €2.1 billion stems from resizing the EV supply chain, including rationalizing battery manufacturing capacity.
The company also booked €5.4 billion in other charges, with €4.1 billion tied to increased warranty provisions following quality issues and €1.3 billion for restructuring costs related to workforce reductions in Europe.
Strategic Shift
Stellantis framed the writedown as part of a broader pivot away from an EV-first strategy toward what it called “freedom of choice” — offering customers a range of electric vehicles, hybrids, and internal combustion engines based on demand rather than regulatory mandates.
The company confirmed it has cancelled the previously planned Ram 1500 BEV, citing both customer demand and changes to the U.S. regulatory framework. It is also returning the HEMI V-8 engine to the Ram 1500 lineup.
“Over the past five years Stellantis has become a leader in electric vehicles and will continue to be at the forefront of their development,” the company said. “That journey continues at a pace that needs to be governed by demand rather than command.”
Balance Sheet Protection
To preserve its financial position, Stellantis‘ board authorized the issuance of up to €5 billion in non-convertible subordinated perpetual hybrid bonds. Industrial available liquidity ended 2025 at approximately €46 billion, representing 30% of net revenues.
The company initiated 2026 guidance projecting improvement in net revenues, adjusted operating income margin, and cash generation, with results expected to strengthen from the first half to the second half.
2025 Sales
The Group sold 2,421,571 vehicles across Europe last year, a 5.99% decline from 2024.
The company’s sales accounted for 16% of the total European automotive market, including both passenger cars and light commercial vehicles.
Europe’s second largest carmaker – which includes 14 car brands, such as Fiat, Opel, Peugeot, among others – saw US sales drop by 3% year over year in 2025 to 1,260,344 units.
