"The charges announced today largely reflect the cost of overestimating the pace of the energy transition that distanced us from many car buyers' real-world needs, means and desires. They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new team. The company said that the charges include cash payments of 6.5bn, to be paid out over the next four years."
"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 taken moves including cancelling its previously planned Ram 1500 BEV, an electric truck it had claimed was set to push boundaries. The company said cancellation of projects, including the Ram 1500, reflected the need to align with customer demand and the changes to US regulatory frameworks."
"While sales of electric vehicles in Europe have soared, demand in the US has collapsed after the Trump administration withdrew a $7,500 (5,527) consumer tax credit, and is looking to remove regulations aimed at curbing car emissions. Stellantis said that it had become a leader in EVs over the past five years and would continue to develop them. However, it added: That journey continues at a pace that needs to be governed by demand rather than command. Stellantis said it will not be paying a dividend to shareholders in 2026. Its shares tumbled almost 19% in early trading in Milan on Friday"
Stellantis announced a 22bn charge and plans to sell a stake in its battery joint venture after overestimating the speed of the shift to electric vehicles and admitting poor operational execution. The charges include 6.5bn in cash payments over four years and nearly 15bn to realign product plans with customer preferences and new US emissions rules, reflecting reduced BEV expectations. The company cancelled projects including the Ram 1500 BEV to better match demand and changing US regulation. Stellantis will continue EV development, will not pay a dividend in 2026, and saw shares fall sharply.
Read at www.theguardian.com
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