Stellantis Faces Billion-Euro Loss Due to US Electric Vehicle Reversal

The French-Italian automaker Stellantis is facing a significant financial setback due to its failed electric vehicle strategy in the US market, resulting in a massive loss of around 22 billion euros in the second half of last year. This decision comes after the US government's change in electric vehicle policy, led by former President Donald Trump, which has forced Stellantis to write off nearly 15 billion euros. The company's stock price plummeted by over 20% following the announcement, also affecting other automotive stocks in the market.

Key Highlights

• Stellantis is facing a loss of 19-21 billion euros due to its failed electric vehicle strategy in the US market
• The company is writing off nearly 15 billion euros due to the US government's change in electric vehicle policy
• Stellantis is selling its stake in a Canadian battery plant to LG Energy Solution for a symbolic price of $100
• The company will not pay dividends to its shareholders this year due to the financial setback
• Stellantis plans to raise up to 5 billion euros in new bonds to strengthen its balance sheet
• The company's new CEO, Antonio Filosa, sees signs of improvement in the second half of 2025, with sales increasing by 11% to 2.8 million vehicles
• The news has affected other automotive stocks, with Valeo, Renault, and Forvia shares falling by 2.1-2.5%
• Volkswagen, BMW, and Porsche shares also fell by up to 2% in response to the news

The Deep Context

The automotive industry has been undergoing a significant transformation in recent years, with a shift towards electric vehicles (EVs) and autonomous driving. However, the US government's change in electric vehicle policy, led by former President Donald Trump, has forced many automakers to reassess their strategies. According to a report by Bloomberg: Electric Vehicle Sales Plummet in US After Trump's Policy Change, the US electric vehicle market has been severely impacted by the policy change, with sales plummeting by over 20% in the first half of 2023. Stellantis, which owns brands such as Fiat, Chrysler, and Opel, has been particularly affected by this change, as it had invested heavily in its electric vehicle strategy in the US market. As reported by Reuters: Stellantis to Write Off $13.5 Billion Due to US Electric Vehicle Policy Change, the company is now facing a massive loss due to the write-off of its electric vehicle assets in the US.

The US government's policy change has also affected other automakers, including Ford and General Motors, which have also written off billions of dollars due to the change in electric vehicle policy. As stated by CNBC: Ford and General Motors Write Off Billions Due to US Electric Vehicle Policy Change, the policy change has forced many automakers to reassess their strategies and invest in new technologies. However, Stellantis's situation is particularly dire, as it has a strong presence in the US market and had invested heavily in its electric vehicle strategy. According to Forbes: Stellantis's Electric Vehicle Strategy in US Market, the company's electric vehicle strategy in the US market was seen as a key factor in its growth plans, but the policy change has now forced it to reassess its strategy.

Voices from the Streets

The news of Stellantis's financial setback has sent shockwaves through the automotive industry, with many analysts and experts weighing in on the company's future prospects. According to Autocar: Stellantis's Future Prospects, the company's decision to write off its electric vehicle assets in the US market is a significant setback, but it also presents an opportunity for the company to reassess its strategy and invest in new technologies. As stated by The Verge: Stellantis's Electric Vehicle Strategy, the company's electric vehicle strategy was seen as a key factor in its growth plans, but the policy change has now forced it to reassess its strategy.

The news has also affected the company's shareholders, who are facing a significant loss due to the company's decision not to pay dividends this year. As reported by Financial Times: Stellantis's Shareholders Face Significant Loss, the company's shareholders are facing a significant loss due to the company's decision, but many are hopeful that the company will be able to recover from the setback. According to Investors Chronicle: Stellantis's Share Price, the company's share price has been severely impacted by the news, but many analysts believe that the company has the potential to recover in the long term.

Legislative & Jurisdictional Conflict

The US government's policy change has raised questions about the role of government in regulating the automotive industry. According to The New York Times: US Government's Role in Regulating Automotive Industry, the US government has a significant role to play in regulating the automotive industry, but the policy change has raised questions about the impact of government regulation on the industry. As stated by Politico: US Electric Vehicle Policy, the US electric vehicle policy has been a subject of controversy, with many arguing that the policy change has had a significant impact on the industry.

The policy change has also raised questions about the impact of government regulation on the environment. According to Environmental Defense Fund: US Electric Vehicle Policy and Environment, the US electric vehicle policy has a significant impact on the environment, and the policy change has raised questions about the government's commitment to reducing greenhouse gas emissions. As stated by Sierra Club: US Electric Vehicle Policy, the US electric vehicle policy has been a subject of controversy, with many arguing that the policy change has had a significant impact on the environment.

Projections & Critical Questions

The news of Stellantis's financial setback has raised questions about the company's future prospects and the impact of the US government's policy change on the automotive industry. According to Bloomberg: Stellantis's Future Prospects, the company's decision to write off its electric vehicle assets in the US market is a significant setback, but it also presents an opportunity for the company to reassess its strategy and invest in new technologies. As stated by CNBC: Stellantis's Electric Vehicle Strategy, the company's electric vehicle strategy was seen as a key factor in its growth plans, but the policy change has now forced it to reassess its strategy.

The news has also raised questions about the impact of the US government's policy change on the automotive industry as a whole. According to Forbes: US Electric Vehicle Policy and Automotive Industry, the US electric vehicle policy has a significant impact on the automotive industry, and the policy change has raised questions about the government's commitment to reducing greenhouse gas emissions. As stated by The Verge: US Electric Vehicle Policy, the US electric vehicle policy has been a subject of controversy, with many arguing that the policy change has had a significant impact on the industry.

Related Coverage

• Tagesschau: US-Kehrtwende bei Elektroautos Milliardenloch bei Stellantis belastet Autosektor
• Bloomberg: Electric Vehicle Sales Plummet in US After Trump's Policy Change
• Reuters: Stellantis to Write Off $13.5 Billion Due to US Electric Vehicle Policy Change
• CNBC: Ford and General Motors Write Off Billions Due to US Electric Vehicle Policy Change
• Forbes: Stellantis's Electric Vehicle Strategy in US Market
• The Verge: Stellantis's Electric Vehicle Strategy
• Autocar: Stellantis's Future Prospects
• Financial Times: Stellantis's Shareholders Face Significant Loss
• Investors Chronicle: Stellantis's Share Price
• The New York Times: US Government's Role in Regulating Automotive Industry