Stellantis books €22 billion charge and suspends dividend after EV missteps

Friday 06 February 2026 - 14:20

By: Dakir Madiha

Stellantis books €22 billion charge and suspends dividend after EV missteps

Stellantis revealed Thursday it will record about €22.2 billion in charges as part of a sweeping business reorganization, admitting the automaker vastly overestimated electric vehicle adoption rates and alienated customers in the process. This massive write-down ranks among the largest one-time hits in the global auto industry's ongoing retreat from overly ambitious electrification targets.

"The charges announced today largely reflect the cost of overestimating the pace of the energy transition, which distanced us from the real needs, means, and desires of many car buyers," CEO Antonio Filosa said in a statement. The company had projected 50 percent EV penetration in the US by 2030, but actual adoption lingers below 6 percent.

The charges, excluded from adjusted operating profit for the second half of 2025, include about €6.5 billion in expected cash outlays over the next four years. The bulk, €14.7 billion, stems from realigning product plans with customer preferences and new US emissions rules: €2.9 billion for canceled products and €6 billion for platform impairments due to lower volume expectations. An additional €2.1 billion covers electric vehicle supply chain resizing, including battery manufacturing capacity rationalization.

Stellantis will skip its 2026 dividend due to net losses and authorized up to €5 billion in non-convertible perpetual subordinated hybrid bonds. The company holds roughly €46 billion in end-of-year industrial cash availability.

Stellantis joins Detroit rivals in booking hefty EV-related charges. Ford Motor announced a $19.5 billion writedown in December 2025 after scrapping its second-generation EV lineup, including the all-electric F-150 Lightning. General Motors disclosed a $6 billion charge in January 2026 to scale back EV investments.

These reversals contrast sharply with prior industry pledges. Under former CEO Carlos Tavares, who departed abruptly in December 2024, Stellantis targeted 100 percent electric sales in Europe and 50 percent in the US by 2030. Filosa scrapped those goals, emphasizing "customer choice" across EVs, hybrids, and internal combustion engines.

Stellantis will unveil its new strategic plan at an investor day on May 21 in Auburn, Michigan. The company already phases out plug-in hybrids in North America for the 2026 model year, including the Jeep Wrangler 4xe, shifting toward conventional hybrids and extended-range EVs. Despite the charges, Stellantis reported an 11 percent delivery increase in the second half of 2025 to 2.8 million units, with North American shipments up 43 percent. Full 2025 financial results come February 26.