{"id":79055,"date":"2026-02-06T21:41:03","date_gmt":"2026-02-07T00:41:03","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/890166001"},"modified":"2026-02-06T21:41:03","modified_gmt":"2026-02-07T00:41:03","slug":"26-billion-gone-stellantis-joins-automakers-retreating-from-evs","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/06\/26-billion-gone-stellantis-joins-automakers-retreating-from-evs\/","title":{"rendered":"$26 Billion Gone: Stellantis Joins Automakers Retreating From EVs"},"content":{"rendered":"
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In January, we saw automakers incur billions of dollars of losses. Another automaker just joined them.<\/p>\n

This week, Stellantis wrote off $26 billion of losses because it overestimated the demand for electric vehicles. <\/p>\n

Stellantis CEO Antonio Filosa said<\/a> the losses reflect weak electric vehicle demand and a disconnect between automakers and consumers. <\/p>\n

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\u201cThe reset we have announced today is part of the decisive process we started in 2025, to once again make our customers and their preferences our guiding star. The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers\u2019 real-world needs, means and desires. They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new Team.\u201d<\/p>\n

Filosa said that the automaker has “gone deep into every corner of our business” and will focus on boosting future growth.<\/p>\n

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Recommended<\/h4>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

He added: “We have gone deep into every corner of our business and are making the necessary changes, mobilizing all the passion and ingenuity we have within Stellantis. The positive customer reception to our product actions in 2025 resulted in increased orders and a return to top-line growth. In 2026, our unwavering focus is on closing past execution gaps to add further momentum to these early signs of renewed growth. We look forward to sharing the full details of our new strategy at our Investor Day on May 21.\u201d<\/p>\n

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After Ford and General Motors announced large writedowns linked to their EV strategy, today Stellantis has announced it will take ~\u20ac22 billion ($26 billion) in impairments as it scales back its EV plans.<\/p>\n

With a brutal admission by the CEO \u2b07\ufe0f pic.twitter.com\/Z75zNamcCm<\/a><\/p>\n

\u2014 Javier Blas (@JavierBlas) February 6, 2026<\/a><\/p><\/blockquote>\n

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The scale of car industry write downs as they retreat from the EV automotive market are breathtaking: $26 billion at Stellantis; $20 billion at Ford; $7.6 billion at GM; $6 billion at Porsche. Has any industry destroyed so much value so quickly?<\/p>\n

\u2014 Luke Johnson (@LukeJohnsonRCP) February 6, 2026<\/a><\/p><\/blockquote>\n

Stellantis said that it won\u2019t pay out a dividend in 2026 and will offer about $6 billion in bonds to stabilize the company. <\/p>\n

However, the company recently announced a manufacturing blitz in the Midwest. It will spend $13 billion<\/a> over the next four years to drive growth in the U.S by adding 5,000 jobs and introducing five new vehicles. <\/p>\n

The company announced the investment after President Donald Trump terminated Biden-era fuel regulations<\/a> that should make vehicles less expensive.  <\/p>\n

Stellantis, which owns Jeep, Chrysler, and RAM, wasn\u2019t the only automaker that got burned by overinvesting in EVs. <\/p>\n

Ford Motor Company lost about $30 billion<\/a> over a handful of years, betting that consumers would want electric vehicles. <\/p>\n

General Motors reported a $7 billion<\/a> loss on electric vehicles. The company blamed the cutoff of government subsidies on the loss, it told regulators and investors. <\/p>\n

\u201cWith the termination of certain consumer tax incentives and the reduction in the stringency of emissions regulations, industry-wide consumer demand for EVs in North America began to slow in 2025,\u201d according to GM\u2019s SEC filing. <\/p>\n<\/div>\n

<\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

… dollars of losses. Another automaker<\/span> just joined them. This … demand and a disconnect between automakers<\/span> and consumers.\u00c2\u00a0 \u00e2\u0080\u009cThe reset … they retreat from the EV automotive<\/span> market are breathtaking: $26 … wasn\u00e2\u0080\u0099t the only automaker<\/span> that got burned by overinvesting …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-79055","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/79055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=79055"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/79055\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=79055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=79055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=79055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}