Stellantis takes €22bn hit after overestimating EV shift

A report from Theguardian says the carmaker Stellantis will take a €22bn charge and sell a stake in its battery joint venture after admitting it “overestimated” the pace of the shift to electric vehicles. Antonio Filosa, the chief executive of Stellantis, said the charges reflect the cost of overestimating the energy transition and the impact of previous poor operational execution.

The company said the charges include cash payments of €6.5bn, to be paid out over the next four years, and that almost €15bn of the charges relate to "realigning product plans with customer preferences and new emission regulations in the US, largely reflecting significantly reduced expectations for battery electric vehicles (BEV)." Stellantis has cancelled projects including the Ram 1500 BEV, saying the moves reflect "the need to align with customer demand and the changes to US regulatory frameworks." It also plans to sell its 49% stake in its battery joint venture in Canada with NextStar Energy to South Korea’s LG Energy Solution.

Canada, United States