Why is Stellantis scaling back electric vehicle production?

Stellantis is scaling back electric vehicle production because it overestimated the pace of the energy transition, leading to lower-than-expected consumer demand.

What financial impact has Stellantis's EV strategy had?

Stellantis has incurred a £19 billion financial hit, including write-offs for vehicles and adjustments to its EV supply chain.

Home / Business and Economy / Stellantis Halts EV Push: £19 Billion Write-Down

Stellantis Halts EV Push: £19 Billion Write-Down

Q: Will Stellantis stop producing electric vehicles?

No, Stellantis will continue to develop EVs, but the pace of production will now be governed by market demand rather than mandates, with a continued commitment to internal combustion engine and hybrid options.

7 Feb

Summary

Stellantis incurs a £19 billion financial loss due to its electric vehicle strategy.
Production of electric vehicles will be scaled back due to lower-than-expected demand.
The company attributes the setback to overestimating the pace of the electric transition.

Stellantis Halts EV Push: £19 Billion Write-Down

Stellantis, the owner of Vauxhall and Peugeot, has reported a substantial £19 billion financial loss stemming from its electric vehicle (EV) initiatives. The automotive giant announced a strategic 'reset,' significantly scaling back its EV production plans as a direct response to weaker-than-anticipated consumer demand. This decision marks a notable shift away from its previous aggressive electrification strategy.

The company's chief executive, Antonio Filosa, stated that the charges largely resulted from overestimating the speed of the energy transition, which had distanced the company from many buyers' actual needs and desires. This strategic adjustment follows similar retrenchments by other major car manufacturers like Ford and General Motors, influenced by factors such as rolling back US subsidies and softening EU emissions targets. Stellantis also confirmed it would not be distributing dividends this year.

The financial impact includes write-offs for vehicles now expected to sell in significantly lower volumes and charges related to adjusting its EV supply chain. While committed to continuing EV development, Stellantis emphasized that the pace of this transition must now be governed by market demand rather than mandates, indicating a greater focus on traditional internal combustion engine vehicles and hybrids alongside EVs.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

Home / Business and Economy / Stellantis Halts EV Push: £19 Billion Write-Down

Stellantis Halts EV Push: £19 Billion Write-Down

7 Feb

•

Summary

Stellantis incurs a £19 billion financial loss due to its electric vehicle strategy.
Production of electric vehicles will be scaled back due to lower-than-expected demand.
The company attributes the setback to overestimating the pace of the electric transition.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.