A view shows the logo of Stellantis at the entrance of the company’s factory in Hordain, France, July 7, 2021. PHOTO: REUTERS
MILAN:
Stellantis announced 22.2 billion euros ($26.5 billion) of charges on Friday as it scales back its electric-vehicle ambitions, hammering its shares as traditional automakers pay the price of misjudging the switch to cleaner driving.
The move is the biggest in a series of writedowns, including at Ford and General Motors, as some automakers pull back from EVs in response to the Trump administration rolling back subsidies and weaker-than-expected demand.
Stellantis’ Milan-listed shares slumped as much as 30% to their lowest since the group’s 2021 creation with the merger of Fiat Chrysler and Peugeot maker PSA. The drop means the writedown is now larger than the company’s market value.
Western automakers face their biggest challenge: juggling investment between EVs and petrol models while contending with fast-rising Chinese rivals and higher trade barriers.
Stellantis now expects a preliminary net loss of between 19 billion and 21 billion euros in the second half of fiscal 2025 and won’t pay a dividend this year.
It expects industrial cash burn of between 1.4-1.6 billion euros in the second half.
