One of the world’s largest automotive companies has announced a massive €22billion (£19billion) writedown as it “resets” its operations following changes to its electric vehicle strategy.
Stellantis, the owner of Vauxhall, has accepted charges of around €22.2billion (£19.2billion) stemming from a “strategic shift to put freedom of choice at the heart of the Company’s plans”.
It said it would focus on a growing range of electric cars, hybrids and “advanced” internal combustion engine vehicles.
Stellantis said the changes are already delivering benefits, while a new strategic plan will be confirmed in May later this year.
The strategic shift comes as Stellantis rows back some of its electric vehicle plans, which have not met early expectations across Europe.
It acknowledged that it had a successful rollout of electric cars and would continue to be at the forefront of future developments.
However, the Dutch-based car giant said electric car development would accelerate, although it would be governed by “demand rather than command”.
It emphasised that drivers should have “freedom of choice”, especially if their lifestyles and work requirements are better suited to hybrids or ICE vehicles.
Stellantis has announced a massive writedown following a ‘reset’ of its strategic plan
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REUTERS
Antonio Filosa, CEO of Stellantis, said: “The reset we have announced today is part of the decisive process we started in 2025, to once again make our customers and their preferences our guiding star.
“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.
“They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new Team.”
Over the last year, Stellantis announced that it would be making changes to its lineup by cancelling products that are “unable to achieve profitable scale”.
Antonio Filosa (centre) was unveiled as the new Stellantis CEO last year
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It said this was being done to align customer demand and changes to vehicle regulation laws in the United States, including the scrapping of the RAM 1500 electric vehicle.
Mr Filosa, who has been at the helm of the company since June last year, said Stellantis had gone “into every corner” of the business to create savings and improve efficiency.
He added: “The positive customer reception to our product actions in 2025 resulted in increased orders and a return to top-line growth.
“In 2026, our unwavering focus is on closing past execution gaps to add further momentum to these early signs of renewed growth.”
Stellantis announced the planned closure of its Luton van factory at the end of 2024
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Full details of Stellantis’ new strategic plan will be unveiled at its Investor Day on Thursday, May 21.
This follows the European Union’s decision to amend the terms of the 2035 petrol and diesel car ban as manufacturers warn of waning car sales and strong competition from Chinese brands.
Under the new terms, which were announced in December, carmakers will need to comply with a 90 per cent tailpipe emissions reduction target.
The remaining 10 per cent needs to be made up of EU-made low-carbon steel, or from e-fuels, allowing the sale of petrol and diesel vehicles beyond 2035.
