Stellantis Embarks on Major Restructuring Amid Electric Vehicle Realities
The carmaker is taking a €22 billion (£19.1 billion) hit due to "overestimating" the pace of shift to electric vehicles, with shares plummeting 25% as it acknowledged "poor operational execution." The charge reflects the cost of aligning product plans with customer preferences and new emission regulations in the US, where demand for battery electric vehicles has collapsed.
CEO Antonio Filosa attributed the charges to distanced itself from car buyers' real-world needs and means. He also pointed out that the effects of "previous poor operational execution" are being progressively addressed by the company's new team. Stellantis plans to sell its stake in a Canadian battery joint venture and will not pay dividends to shareholders in 2026.
The company had previously set ambitious targets, including 100% of sales in Europe and 50% in the US to be of battery electric vehicles by the end of the decade. However, the US market has seen demand collapse following the withdrawal of a $7,500 consumer tax credit and efforts to remove regulations aimed at curbing car emissions.
Analysts warn that Stellantis may still have to consider factory closures and output reductions despite the restructuring plan. Citi analysts noted that the announcement does not include any factory closures and do not believe it resets the cost base fully.
The news has led to questions about whether Stellantis's frustration over its electric vehicle sales is linked to market issues or driver preferences for the company's vehicles. The company is set to present an update of its long-term strategy in May, as it seeks to regain momentum and close past execution gaps.
The carmaker is taking a €22 billion (£19.1 billion) hit due to "overestimating" the pace of shift to electric vehicles, with shares plummeting 25% as it acknowledged "poor operational execution." The charge reflects the cost of aligning product plans with customer preferences and new emission regulations in the US, where demand for battery electric vehicles has collapsed.
CEO Antonio Filosa attributed the charges to distanced itself from car buyers' real-world needs and means. He also pointed out that the effects of "previous poor operational execution" are being progressively addressed by the company's new team. Stellantis plans to sell its stake in a Canadian battery joint venture and will not pay dividends to shareholders in 2026.
The company had previously set ambitious targets, including 100% of sales in Europe and 50% in the US to be of battery electric vehicles by the end of the decade. However, the US market has seen demand collapse following the withdrawal of a $7,500 consumer tax credit and efforts to remove regulations aimed at curbing car emissions.
Analysts warn that Stellantis may still have to consider factory closures and output reductions despite the restructuring plan. Citi analysts noted that the announcement does not include any factory closures and do not believe it resets the cost base fully.
The news has led to questions about whether Stellantis's frustration over its electric vehicle sales is linked to market issues or driver preferences for the company's vehicles. The company is set to present an update of its long-term strategy in May, as it seeks to regain momentum and close past execution gaps.
. Now look at Stellantis taking a €22 billion hit because they thought people wanted electric vehicles faster than they actually did 
. I mean, what's wrong with slowing down and seeing how it goes? They're essentially trying to force-feed the market something that isn't in demand yet...it's like buying a new iPhone the moment it comes out (remember those days?) 
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they overestimated the electric vehicle shift and now they're taking a 22 billion euro hit 
i'm not surprised tho, they were always trying to rush their EV plans 
antonio filosa is being super honest about poor operational execution 
but like i get it, mistakes happen 
at least they're addressing the issues and planning to sell that canadian battery joint venture 
maybe this restructuring plan will help them get back on track 
fingers crossed! 
Stellantis's restructuring is just what they needed to shake things up. €22 billion is nothing compared to the massive costs of not switching to electric fast enough 
I mean, come on, who wouldn't wanna drive an EV? The collapse in US demand was coming, it's like everyone knew it was gonna happen 
And all this talk about poor operational execution? Please, CEOs need to own up to their mistakes and take responsibility for it 
Stellantis is making the right move by selling that battery joint venture, it's a smart business decision 
like, stellantis is taking a huge hit because they thought evs were gonna be super popular in the us but now demand has collapsed? 
that's some major overestimation right there... maybe it's time for them to rethink their strategy and focus on what customers really want 
instead of just chasing after some arbitrary targets.
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. for now, let's just say it's a wake-up call for the entire industry 
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. Demand collapsing due to tax credits and regulations being removed doesn't exactly scream 'business as usual' 
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. I'm curious to see how their new strategy update in May plays out 
. Maybe it'll be a fresh start for the company, or maybe they'll just be revisiting the same old problems 
. Only time will tell 
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anyway, let's see what they got planned 4 the future 
... they're taking a massive hit due to underestimating EV demand in the US market 
. It's crazy how quickly things can change in the auto industry 
. Maybe they should just take this as an opportunity to restructure and get back to making cars that people actually want to buy 
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. let's see how stellantis adapts and regains momentum 