Stellantis takes €22.2 billion charge, pauses dividend payouts
Stellantis, the company behind brands like Jeep and Fiat, just announced a huge €22.2 billion charge after realizing their electric car plans were a bit too ambitious.
With fewer people buying EVs than expected and new US rules in play, they're now predicting big losses in 2026 and have paused dividend payouts.
Major restructuring underway at Stellantis
Most of the charge—about €14.7 billion—is being used to update their car lineup to match lower EV demand and stricter emissions standards in the US.
Another chunk is set aside for resizing their EV supply chain and making other operational tweaks.
To keep things stable, Stellantis also plans to raise up to €5 billion by issuing bonds.
Not just Stellantis
CEO Antonio Filosa admitted they "largely reflect the cost of over-estimating the pace of the energy transition...," saying they need to better match what customers actually want right now.
Even so, Stellantis expects stronger revenue and profits this year after selling off part of its battery business.
They're not alone—lots of carmakers are slowing down on EVs as everyone realizes this shift isn't happening overnight.