Stellantis Expects First Annual Loss Since 2021 After $26B EV Write-Down
AUBURN HILLS, Mich. — Stellantis is likely to record its first annual loss since its creation in 2021, following an unexpectedly large write-down of $26 billion linked to what it described as an overly ambitious electrification strategy.
The automaker said the charge reflects a strategic shift, primarily related to electric vehicle development.
According to the company, the $26 billion charge includes expenses related to canceled products, platform impairments and reduced volume and profitability for ongoing EV programs. Another chunk is tied to resizing the EV supply chain, while the remainder stems from company operations, including vehicle quality issues.
The company said the write-down follows the cancellation of products that were unable to achieve profitable scale, including the Ram 1500 battery-electric vehicle.
In 2021, Stellantis announced plans to invest heavily in electrification, including battery technology, EV platforms and range-extender applications across its global brands.
Stellantis announced Feb. 6 it will sell its 49% stake in NextStar Energy, Canada's first large-scale lithium-ion battery manufacturer, to joint venture partner LG Energy Solution for $100. Despite this, Stellantis said it remains committed to electrification and will retain long-term battery supply access.
The move comes as Detroit automakers reassess EV investments. Both Ford and GM took billion-dollar write-downs on their EV investments during the past fiscal year. Stellantis said it will release full-year 2025 financial results Feb. 26 and outline a new product strategy at its Investor Day on May 21.
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