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(Bloomberg) — Stellantis NV will take roughly €22 billion ($26 billion) in charges linked to a sweeping overhaul of its operations as high costs and muted electric-vehicle sales force the automaker to adjust its strategy.
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The writedowns, which include a cash payment of about €6.5 billion, follow similar moves at Ford Motor Co., General Motors Co. and other carmakers. The decision is part of a new plan the company plans to present in May, Stellantis said Friday.
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Stellantis will incur the charges, which will be excluded from the profit line, during the second half of 2025.
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Friday’s announcement includes ending a joint venture with South Korean battery maker LG Energy Solution Ltd. in Canada. In 2022, the car manufacturer said it would invest over C$5 billion ($3.7 billion) with LG Energy establish the first large-scale EV battery manufacturing facility in Windsor, Ontario.
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Chief Executive Officer Antonio Filosa, at the helm since June, has been overhauling the 14-brand carmaker to regain market share, while walking back EV ambitions and mitigating the cost of US tariffs. Stellantis has eliminated fully electric models including the RAM 1500 pickup truck in the US while delaying Alfa Romeo EV projects in Europe.
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Stellantis isn’t alone in tallying the cost of adjusting to slower-than-expected EV demand. Ford in December said it would take $19.5 billion in charges tied to an overhaul of its EV business. Writedowns at rival General Motors have ballooned to $7.6 billion. Porsche AG walked back its outlook four times last year as it’s course-correcting on EVs.
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The company also reported second-half earnings with net revenues and industrial free cash flows improving compared to the first half of 2025, in line with its guidance. Still, results were impacted by one-offs such as change in estimate for contractual warranties, and other items.
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The margin on operating income during the second half fell below the guided low-single digit range.
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