Stellantis in the Red After U-Turn on US Electric Car Course - Stellantis slashes $22B from EV plans after U.S. subsidy cuts

Stellantis has announced a €22 billion write-down after scaling back its electric vehicle plans in the U.S. The move follows President Trump's decision to scrap subsidies for electric cars, dealing a heavy blow to the automaker. Shares in the company fell to a record low after the news broke.

The company, which owns brands like Opel, Chrysler and Fiat, had already been struggling in North America. Nearly €15 billion of the write-down comes from abandoning or reducing electric vehicle projects in the U.S. market. Rivals Ford and General Motors had previously taken similar financial hits due to the government's shifting policies on electric cars.

Stellantis will now face €6.5 billion in cash outflows over the next few years as it adjusts its strategy. To manage the financial strain, the firm has suspended dividend payments and plans to raise €5 billion through new bond sales. Some models have been discontinued, and the company has accepted lower future profits because of stricter U.S. emissions rules.

New CEO Antonio Filosa reported early signs of a sales recovery in the second half of 2025. However, no specific changes to Stellantis' U.S. production lines or model range have been confirmed since 2023.

The write-down and strategic shift highlight the challenges Stellantis faces in adapting to policy changes. With €6.5 billion in upcoming costs and a suspended dividend, the company is now focused on stabilising its finances. The impact of these decisions on long-term performance remains to be seen.