Stellantis, the multinational carmaker behind brands including Peugeot, Vauxhall and Fiat, has announced a major €22.2 billion charge to reset its business strategy after admitting it overestimated how quickly customers would switch to electric vehicles (EVs).
The move, revealed as part of its second-half 2025 financial update, signals a sharp change in direction for one of Europe’s biggest car groups. It also raises fresh questions for UK motorists, investors, and workers linked to the car industry.
What did Stellantis announce and why does it matter?
Stellantis confirmed it will record around €22.2 billion in charges in its accounts, mainly linked to changes in product plans and the slowing demand for EVs.
The company said it needs to realign its business because it expected the energy transition to move faster than it has.
Stellantis admitted it had focused too heavily on electric-only planning and is now shifting back towards a more balanced approach, offering a mix of petrol, hybrid and electric models.
This matters because Stellantis is a major global manufacturer and plays a key role in European and UK car supply chains. A change of strategy at this scale can affect future production plans, investment, and model availability in the UK.
How big is the €22 billion charge, and what does it include?
The €22.2 billion charge includes several major items, including:
- €14.7 billion related to realigning product plans
- €2.9 billion in write-offs for cancelled products
- €6 billion in platform impairments linked to lower EV volume expectations
Stellantis said the move reflects a reassessment of its future production levels and the speed of EV adoption.
Why is Stellantis pulling back from electric vehicles?
Stellantis said it overestimated the pace of the energy transition and is now reacting to what customers are actually buying.
After Ford and General Motors announced large writedowns linked to their EV strategy, today Stellantis has announced it will take ~€22 billion ($26 billion) in impairments as it scales back its EV plans.
With a brutal admission by the CEO ⬇️ pic.twitter.com/Z75zNamcCm
— Javier Blas (@JavierBlas) February 6, 2026
Across Europe, EV demand has grown, but not at the speed manufacturers once expected. Many consumers remain hesitant due to high vehicle prices, limited charging access, and concerns over battery life and resale value.
In practical terms, Stellantis now plans to offer more flexibility, rather than betting heavily on full-electric platforms.
What does this mean for UK car buyers?
For UK drivers, this could mean:
- More hybrid options are becoming available over the next few years
- A slower reduction in petrol and diesel models than previously expected
- Potential changes in pricing strategies as manufacturers fight to maintain sales
If Stellantis expands its hybrid and mixed-powertrain offerings, UK customers may benefit from more choice, especially in areas where charging networks still lag behind demand.
What has Stellantis said about dividends and financial stability?
Stellantis confirmed it will suspend its 2026 dividend, mainly because the charge will lead to a significant net loss in 2025.
To strengthen its balance sheet, the board has also approved the issuance of up to €5 billion in non-convertible subordinated perpetual hybrid bonds, a financial tool often used to boost liquidity and protect long-term stability.
Are there any signs of recovery inside the company?
Despite the massive charge, Stellantis reported some positive movement in its performance.
The company said consolidated shipments rose 11% year-on-year to 2.8 million units, with North America recording the strongest growth at 39%.
It also ended 2025 with industrial available liquidity of around €46 billion, giving it breathing space despite the scale of the write-down.
What did Stellantis CEO Antonio Filosa say?
Stellantis CEO Antonio Filosa said the company’s strategy reset aims to refocus the business on customer demand.
“The 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 message from leadership is clear: Stellantis wants to stop forcing the market toward full electrification and instead build vehicles that match real buying behaviour.
What are Stellantis’ financial forecasts for 2026?
For 2026, Stellantis expects:
- A mid-single-digit percentage increase in net revenues
- A low-single-digit adjusted operating income margin
- Around €1.6 billion in net tariff expenses
- Improved industrial free cash flow compared with 2025
However, the company expects around €2 billion in payments linked to the 2025 charge, which could continue to pressure its finances.
Stellantis also confirmed it will release its full-year 2025 financial results on 26 February 2026.
