Jeep and RAM parent Stellantis lost up to €21 billion (A$35bn) in the second half of 2025, largely due to €22.2 billion (A$37.4bn) in costs related to the company’s less than successful electric vehicle (EV) push in the US.
The write down encompasses payments to laid off employees, the pairing back of battery production, and reduced volume expectations for the company’s remaining EVs.
There’s also €5.4 billion set aside for a “contractual warranty provision” that takes “into account recent increases in cost inflation and a deterioration in quality” which is “now being reversed by the new management team”.
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With the company sliding into the red, Stellantis has suspended dividend payouts for 2026. The stock markets have not reacted well to the loss, with the company’s shares falling 24 per cent from US$9.54 prior to the announcement to US$7.28 at the time of writing.
CEO Antonio Filosa spruiked the write-off as a necessary part of a “reset”, which will see the automaker “once again make our customers and their preferences our guiding star”.
He blamed the massive loss on “over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires”, as well as “previous poor operational execution”.
In 2021, then-CEO Carlos Tavares announced an ambitious €30 billion EV program for both the European and American arms of the newly formed French-Italian-American automaker.
For the US, the company planned to launch new electric muscle car, an electric Ram 1500 pickup truck, and an electric mid-size ute within a few short years. As part of that plan, the Euro-centric Opel/Vauxhall brands would abandon internal combustion engines by 2028.
After Mr Tavares quit in 2024, and Antonio Filosa took over in the middle of 2025, Stellantis changed course. It reintroduced V8 engines to the Ram 1500, and then killed off the pickup’s long-delayed EV variant.
The company also axed its Jeep and Chrysler plug-in hybrids (PHEVs) due to falling demand. With PHEVs now gone from the North American range, the company is concentrating on extended-range EVs, including one for the Ram 1500.
In Europe, the company offers electric drivetrains in many popular models, but in North America choices are limited to the Dodge Charger and Jeep Wagoneer S, as well as the upcoming Jeep Recon.
According to Good Car Bad Car, only 6701 editions of the Wagoneer S were sold in the US last year. The company managed to shift just 4645 electric Dodge Chargers through the entirety of 2025, while the six-cylinder version, which only became available late in the year, notched up 4916 sales.
For context, Ford sold 45,333 examples of its four- and eight-cylinder Mustang in the US in 2025.