The European carmaker behind Vauxhall, Citroen and Fiat has said it will take a €22 billion charge in the second half of last year after admitting it “overestimated the pace of the energy transition”.
Stellantis said it would “reset” its business to put “freedom of choice” at the heart of the company’s plans. It said electric vehicles will “continue to be at the forefront”, but the business must be governed by “demand rather than command” to accommodate drivers who want hybrid and petrol-driven cars.
Antonio Filosa, its chief executive, said: “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.”
Shares of the Franco-Italian group failed to start trading at market open in Milan and were halted briefly after an initial 14 per cent drop. They continued to fall once trading resumed, and were down 21 per cent at €6.40, the lowest price in five years by 9am UK time.
It said it has taken “the vast majority of decisions required to correct direction, particularly related to aligning our product plans and portfolio with market demand,” and will present its new business plan in May.
Stellantis’s move, although larger in scale, follows similar decisions by its US competitors, Ford and General Motors, marking a retreat by western carmakers makers from battery-powered models in response to the Trump administration’s policies and softer demand. Stellantis’s US-focused brands include Chrysler, Dodge, Jeep and Ram.
As a result of the announced writedowns, Stellantis now sees a preliminary loss of €19-21 billion euros in the second half of 2025 and will not pay a dividend this year.
The company will release final second half and full-year 2025 results on February 26.
More soon on this breaking story
