Stellantis to Take $26 Billion Hit as It Pulls Back From Electric Cars

Stellantis said it will record a 22.2 billion euro (about $26 billion) charge to profit to cover the cost of reversing its electric-vehicle strategy and other moves aimed at reversing weak sales. The company also suspended dividend payments, saying the charges would leave it with a substantial loss for 2025.

"We have gone deep into every corner of our business and are making the necessary changes, mobilizing all the passion and ingenuity we have within Stellantis," Chief Executive Antonio Filosa said. Investors, seeking a clearer recovery plan, reacted sharply: the share price fell about 27 percent in European trading.

Tom Narayan of RBC Capital Markets said investors are awaiting further evidence of a turnaround in business fundamentals. Stellantis was formed in 2021 by the merger of Fiat Chrysler and Peugeot SA and had planned to expand its electric lineup while phasing out some large gasoline engines in North America.