MILAN, Feb 6 (Reuters) – Stellantis on Friday announced write-downs worth 22.2 billion euros ($26.5 billion) as it scaled back its ambitions for electric vehicles, hurting its shares as automakers are paying the price for misjudging the transition to more environmentally friendly driving.
The move follows similar, albeit smaller, writedowns by rivals such as Ford and General Motors, as many Western automakers are moving away from battery-powered models in response to Trump administration policies and weak demand.
The company’s shares listed on the Milan stock exchange plunged 25% on Friday, the lowest value since Stellantis was created in early 2021 through the merger of Fiat Chrysler and PSA, maker of Peugeot.
In addition to tariffs, slower demand in key market China and cheap competition from Chinese manufacturers, traditional automakers are having to deal with slower-than-expected uptake of electric vehicles, especially in the U.S., where President Donald Trump has slashed subsidies and rejected green technologies.
“The company has made the vast majority of decisions necessary to correct course, especially with regard to aligning our plans and product portfolio with market demand,” Stellantis — which will present its new business plan in May — said in a statement.
The charges, which will be accounted for in second-half 2025 results, are primarily related to the realignment of product plans with customer preferences and new U.S. emissions regulations, “largely reflecting significantly lowered expectations for electric vehicles,” the company said.
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They will also track the resizing of Stellantis’ electric vehicle supply chain and changes to its estimates for contractual warranty provisions due to insufficient product quality, as well as the charges for staff cuts already announced in Europe.
The writedowns include cash payments of around 6.5 billion euros, which are expected to be spread over four years from 2026, he added.
Due to writedowns, Stellantis now expects a preliminary net loss of between 19 billion and 21 billion euros in the second half of fiscal 2025 and will not pay dividends this year.
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The company will release final results for the second half and full year 2025 on February 26.
(Reporting by Giulio Piovaccari)
