Stellantis, the multinational automaker behind iconic brands like Jeep, Ram, Fiat, Peugeot, and Chrysler, has reported a staggering €22.3 billion (approximately $26.3 billion) net loss for 2025 — marking its first annual loss since the company’s formation in 2021. This dramatic financial hit stems largely from a major strategic pivot away from an aggressive electric vehicle (EV) push, as the company admits to overestimating the speed of consumer adoption in the shift to electrification.
Massive Write-Downs Signal a Sharp Course Correction
The bulk of the losses — around €25.4 billion in exceptional charges — includes heavy impairments tied to rethinking its EV roadmap. These cover canceled or delayed electric models (particularly in the U.S. market), adjustments to the EV supply chain, revised warranty provisions, and workforce reductions in Europe. CEO Antonio Filosa attributed the results to “over-estimating the pace of the energy transition,” emphasizing the need to refocus on customer preferences for a broader mix of powertrains rather than an all-in EV approach.
Under the previous “Dare Forward 2030” plan, Stellantis had aimed for rapid electrification and carbon neutrality goals. However, slower-than-expected EV demand, evolving regulations (including changes in the U.S. under the current administration), and reduced incentives prompted a “reset.” The company is now prioritizing a “freedom-of-choice” strategy: maintaining battery-electric options while ramping up investments in hybrids, plug-in hybrids, and traditional internal combustion engines — including reviving high-margin V8 “Hemi” engines for trucks.
This shift includes canceling several planned EVs, such as certain Ram and Jeep models, and scaling back production commitments. While painful in the short term, Stellantis views it as essential for aligning with real-world market realities and restoring profitability.
Industry-Wide Pullback on EVs Continues
Stellantis is not alone in facing these headwinds. U.S. rivals Ford and General Motors have also taken multibillion-dollar hits recently as they dial back ambitious EV plans:
- Ford announced around $19.5 billion in special charges late in 2025, including write-downs on EV assets and cancellations of programs like a full battery-electric F-150 Lightning successor (shifting toward hybrid or range-extended variants).
- GM recorded roughly $6 billion in charges for unwinding some EV investments, with additional costs from supplier negotiations and production adjustments, reflecting a broader slowdown in EV uptake.
These moves highlight a sector-wide recalibration: what was once seen as an inevitable rapid transition to EVs has proven more complex, costly, and demand-dependent than anticipated. Factors like high upfront prices, charging infrastructure gaps, policy shifts, and consumer preference for hybrids have forced major players to rethink timelines and portfolios.
Path Forward: Profitability in Sight for 2026
Despite the grim 2025 figures, Stellantis is optimistic about recovery. The company has suspended its dividend to preserve cash, issued hybrid bonds, and reaffirmed guidance for 2026, targeting mid-single-digit revenue growth and a return to slightly positive adjusted operating margins. Filosa highlighted North America as a key growth driver, with stronger truck sales, new product launches, and operational improvements expected to fuel a rebound.A new strategic plan is set for unveiling soon, focusing on execution, efficiency, and a balanced multi-energy lineup to better serve diverse customer needs across global markets.This EV strategy rethink underscores a pivotal moment for the auto industry: balancing sustainability goals with economic viability and consumer realities. While the transition to electrification continues, it appears set to unfold more gradually — and pragmatically — than earlier forecasts suggested.
