London – Stellantis, the owner of Jeep and Chrysler, announced a ‘reset’ of its business after its large investments in electric vehicles have not paid off.
The company said its obligations total more than $26 billion, a large portion of which includes write-downs of assets and cash payments for canceled EV projects and costs to reprofile the electric-vehicle supply chain.
Stellantis shares (STLA) have fallen more than 30%.
The strategy update follows similar, costly moves by Ford and General Motors in recent weeks.
Many manufacturers in the United States have invested heavily in EV programs in response to strict environmental rules imposed by the Biden administration, expecting that some states, following California, would ban the sale of gasoline-powered cars within the next decade.
However, the Trump administration scrapped these emission requirements and support for electric vehicles, and questioned the authority of states to set their own standards.
“largely reflect the costs of overstating the pace of the energy transition.”
According to Filosa, “the shift to electric vehicles should be driven by demand, not by mandates.” The company also stated in a statement that the shift to EVs “should be driven by demand, not by mandates.”
“should be driven by demand, not by mandates.”
“Stellantis aims to be a beacon of freedom of choice, especially for customers whose lifestyle and work requirements make an expanded lineup of hybrid and modern internal-combustion engines the right choice for them.”
According to the explanation, the bulk of the obligations – €14.7 billion ($17.37 billion) – are for “reworking product plans to align with customer preferences and new US emission requirements.”
The company is set to release its 2025 results on February 26. However, on Friday it posted a net loss for the year and said it would not pay dividends in 2026.
Filosa voiced more optimistic projections for the current year, saying during the earnings call that Stellantis would be profitable through 2026.
Recent regulatory changes in Europe have also not favored the move to cleaner cars. The EU planned to ban the sale of new internal-combustion engine cars by 2035. But in December, under pressure from manufacturers, the bloc’s executive body said the ban would cover only 90% of new cars. That means the remaining 10% after 2035 could remain hybrids or ICE-powered vehicles.
European appetite for EVs is lower than manufacturers expected, not least due to the continent’s fragmented charging infrastructure.
Measuring a vehicle’s life-cycle air pollution is not straightforward: you must account not only for manufacturing but the entire period of use, including how components were manufactured. Gasoline cars, hybrids, and electric vehicles generally produce similar levels of pollution during production, until you reach the battery-production stage.
Fully electric cars require large batteries made from materials that require substantial mining. This makes EVs roughly 40% more “polluted” in production compared with hybrids and gasoline cars, according to one study.
Yet the picture changes over the entire life cycle: gasoline cars are usually cleaner at the start of production, but through use – especially emissions – their overall impact rises. EVs, though requiring significant resources for batteries, typically deliver the smallest overall carbon footprint over the life cycle – about 40% less than gasoline cars.
This story has been updated with additional material.
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