Stellantis has completed a $5.8 billion bond offering to strengthen its financial position following massive charges related to scaling back its electric vehicle plans. The automaker took $24 billion in losses last month after determining customers weren’t adopting electric vehicles as quickly as anticipated.
The automotive giant behind Jeep, Ram, and Chrysler vehicles has completed a massive $5.8 billion bond sale to shore up its finances after taking significant losses from a major electric vehicle strategy overhaul.
Stellantis announced Wednesday that it successfully priced the multi-part bond offering, which comes just weeks after the company revealed it was absorbing 22.2 billion euros in financial charges. The substantial losses stem from the automaker’s decision to scale back its electric vehicle ambitions after CEO Antonio Filosa acknowledged the company had overestimated consumer appetite for electric cars.
The bond sale, which was completed Tuesday, was structured in three separate portions: 2.2 billion euros in perpetual notes with a 5.25-year period before potential redemption and 6.25% interest rate; 1.8 billion euros in perpetual bonds with an 8-year protection period and 6.875% rate; and 865 million British pounds in perpetual notes with a 6.5-year term initially offering 8.25% returns.
“This issuance will further strengthen Stellantis’ capital structure and liquidity position,” the company stated in announcing the bond completion.
The financial instruments are scheduled to be finalized on March 16.
The manufacturer, which also owns Peugeot, Fiat, and Citroen brands, is now pivoting toward greater focus on hybrid vehicles and traditional gasoline engines, moving away from former CEO Carlos Tavares’ electric-focused approach. Company leadership argues that consumer demand for fully electric vehicles has fallen short of earlier forecasts, especially in American markets.
Stellantis plans to unveil its revised long-term strategic plan on May 21.
More from TV Delmarva Channel 33 News
