Detroit, Michigan, February 7, 2026
Stellantis has announced a substantial €22.2 billion charge as it revises its electric vehicle strategy due to overestimated consumer demand. This financial adjustment includes multi-billion euro realignments on product plans, resizing of the EV supply chain, and various operational changes. The company’s stock value has been adversely affected, leading to declines in both Milan and New York. Under CEO Antonio Filosa, Stellantis is refocusing on gasoline and hybrid vehicles to better meet current market preferences and aims to present a new business plan later this year.
Stellantis Reports €22.2 Billion Charge Amid EV Strategy Overhaul
Detroit, Michigan – Stellantis, the parent company of brands such as Chrysler, Fiat, and Jeep, has reported a €22.2 billion ($26.5 billion) charge as it revises its electric vehicle (EV) strategy. This substantial financial adjustment reflects the company’s decision to scale back its EV ambitions in response to overestimating consumer demand and prior operational missteps.
Financial Impact and Strategic Adjustments
The €22.2 billion charge encompasses several key components:
- €14.7 billion related to realigning product plans with customer preferences and new emission regulations in the U.S., indicating significantly reduced expectations for battery electric vehicle (BEV) models.
- €2.1 billion associated with resizing the EV supply chain.
- €5.4 billion covering other operational changes within the company.
In addition to this charge, Stellantis plans to issue up to €5 billion in non-convertible subordinated perpetual hybrid bonds to enhance its financial position. The company further announced that it will not pay a dividend in 2026, aiming to preserve a strong balance sheet and maintain approximately €46 billion in industrial available liquidity by year-end.
Market Reaction
The announcement led to a sharp decline in Stellantis’ stock value. In Milan, shares plummeted by over 19%, and in New York, the stock experienced a significant drop, reflecting investor concerns over the company’s strategic shift and its implications for future growth.
Background and Leadership Changes
Under the leadership of CEO Antonio Filosa, who assumed his role in June 2025, Stellantis has been reevaluating its approach to the EV market. Filosa acknowledged that the company had “overestimated” the pace of the energy transition, leading to a strategic reset aimed at aligning product offerings with actual market demand. This shift includes the cancellation of previously planned EV models, such as the Ram 1500 BEV, and a focus on gasoline and hybrid vehicles to better meet customer preferences.
Stellantis’ decision dovetails with a broader trend in the automotive industry, where several manufacturers have faced challenges in transitioning to electric vehicles, resulting in significant financial adjustments and strategic realignments.
Looking Ahead
Stellantis is set to present its new business plan in May, outlining the company’s future direction and strategies to navigate the evolving automotive landscape. The focus will be on balancing electrification efforts with consumer demand and operational efficiency to ensure sustainable growth in the coming years.
FAQ
What is the €22.2 billion charge announced by Stellantis?
The €22.2 billion charge represents the financial impact of Stellantis scaling back its electric vehicle (EV) strategy. It includes €14.7 billion for realigning product plans with customer preferences and new emission regulations in the U.S., €2.1 billion for resizing the EV supply chain, and €5.4 billion for other operational changes.
Why did Stellantis decide to adjust its EV strategy?
Stellantis acknowledged that it had overestimated the pace of the energy transition, leading to a strategic reset aimed at aligning product offerings with actual market demand. This includes focusing more on gasoline and hybrid vehicles to better meet customer preferences.
How did the market react to Stellantis’ announcement?
The announcement led to a significant decline in Stellantis’ stock value, with shares dropping by over 19% in Milan and experiencing a notable decrease in New York, reflecting investor concerns over the company’s strategic shift.
What are Stellantis’ plans for the future?
Stellantis is set to present its new business plan in May, outlining the company’s future direction and strategies to navigate the evolving automotive landscape, focusing on balancing electrification efforts with consumer demand and operational efficiency to ensure sustainable growth.
Key Features
| Feature | Details |
|---|---|
| Charge Amount | €22.2 billion ($26.5 billion) |
| Components of Charge | €14.7 billion for product realignment, €2.1 billion for EV supply chain resizing, €5.4 billion for operational changes |
| Dividend Announcement | No dividend to be paid in 2026 |
| Stock Market Reaction | Shares declined by over 19% in Milan and experienced a significant drop in New York |
| CEO | Antonio Filosa |
| Upcoming Business Plan Presentation | Scheduled for May |
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