Stellantis Takes $26.5 Billion Charge Amid EV Production Cutbacks

Feb 7, 2026 (3 days ago)

Negative

Stellantis announced a massive financial charge and a strategic reset after realizing EV demand forecasts were overly optimistic.

Massive Financial Write-Down and EV Strategy Pivot

Stellantis recorded a $26.5 billion charge due to cutting back electric vehicle production, aligning with other manufacturers facing lower-than-expected EV adoption1
The charges include write-offs and cash payments associated with canceling EV products and resizing the EV supply chain2
CEO Antonio Filosa stated that the company's previous assumptions regarding EV demand were "over optimistic"1
The company is implementing a strategic reset to center its business model globally around actual customer preferences1
The shift to EVs must now be "governed by demand rather than command," according to the CEO2

The financial charges also reflected internal quality issues, which the CEO attributed to cost-cutting measures implemented under the previous administration1
In response to these quality concerns, Stellantis has hired 2,000 engineers globally1

Stellantis forecasts a mid-single-digit increase in net revenue for 2026, alongside a low-single-digit adjusted operating income margin1
The company confirmed it will not issue a dividend payment during 20261
The business realignment is influenced by regulatory changes, including the rollback of emissions rules and financial support for EVs by the Trump administration2
Industry data shows fully electric vehicles accounted for 19.5% of European sales but only 7.7% of new U.S. car sales last year1