Stellantis swallows $26 billion costs as it rethinks its EV strategy

"The automotive industry's big bet on a rapid adoption of electric vehicles-at least here in the United States-continues to unwind. Today, Stellantis, which owns brands like Jeep and Dodge, as well as Fiat, Peugeot, and others, announced that it has "reset" its business to adapt to reality, which comes with a rather painful $26.2 billion (22.2 billion euro) write-down. It wasn't that long ago that everyone was more bullish on electrification."

"Not everyone agreed. Some automakers, having been left behind by the push toward battery EVs and away from simple hybrids that offered little in the way of true decarbonization, lobbied hard to relax fuel efficiency standards. Car dealers, uncomfortable with the prospect of investing in and learning about new technology, did so, too. When the Republican Party won the 2024 election, the revanchists got their wish."

"Gone were the incentives to consumers and businesses to buy EVs, which helped offset the higher purchase price. Out went funding for that national network of high-speed chargers. Tough future emissions standards were torn up, and inefficient and polluting gasoline engines will instead be the order of the day. And automakers were told to forget about being fined under the existing regulations-"sell as many gas-guzzlers as you like" was the message."

Stellantis announced a business reset that produced a $26.2 billion (22.2 billion euro) write-down. Early optimism drove announcements of ten new battery factories and commitments to charging infrastructure. Policy reversals removed consumer incentives, funding for high-speed chargers, and strict emissions standards after the 2024 election, reducing EV demand. Some automakers and dealers lobbied for relaxed fuel-efficiency rules amid concerns about hybrid effectiveness. Ford and GM recorded multibillion-dollar write-downs and reprioritized combustion-engine platforms and canceled certain EV plans. The industry is shifting back toward gasoline engines amid diminished regulatory pressure and reduced EV adoption expectations.

Read at Ars Technica