Stellantis scales back EV push, books €22bn charges and refocuses on combustion models

Stellantis launches sweeping strategic reset, pulls back on EV-first push

Stellantis is announcing a sweeping strategic reset that scales back its electrification strategy and realigns product plans to better match regional customer preferences. CEO Antonio Filosa says the automaker will move forward as a single company despite speculation about selling brands or splitting up, adding “we want to stay together for many years to come.” The plan books about €22 billion in charges to be recognised in the second half of 2025, reflecting revisions to product roadmaps, warranty provisions, EV supply‑chain resizing and European restructuring.

The charge breakdown includes roughly €14.7 billion to realign product plans with consumer demand and U.S. emissions rules, €2.1 billion to downsize the EV supply chain, €4.1 billion for warranty costs and about €1.3 billion to restructure European operations. Stellantis signals a pullback on fully electric ambitions in some markets and a renewed emphasis on combustion‑engine offerings where customers still favour them, including a reintroduction of V8 engines to certain U.S. models. Filosa calls past assumptions about EV demand “over optimistic” and frames the measures as necessary to stabilise profitability and restore market share after recent declines.

Management is also taking steps to address quality and engineering gaps that emerged during prior cost cuts, increasing engineering headcount by about 2,000 globally and revising product development and warranty assumptions. The company says it will trim capital allocation for some EV projects while balancing investments across electrified and internal combustion portfolios by region, with a continued focus on growing U.S. sales across brands such as Jeep, Ram and Chrysler. Stellantis cancels its 2026 dividend and issues a €5 billion non‑convertible hybrid bond to shore up resources, and promises further detail at an investor day on May 21 after recent briefings to franchised dealers.

Legal inquiry into statements; diversity accolade for Stellantis executive

Separately, U.S. law firm Ademi LLP is launching a preliminary securities‑fraud probe into whether Stellantis made inaccurate public statements about its operations and EV strategy, inviting potentially affected investors to come forward. The firm frames the outreach as an initial investigation and provides contact details but specifies no timetable or estimated damages.

At the Chicago Auto Show, Stellantis’ Chrysler brand CEO Chris Feuell receives the What Drives Her Trailblazer Award, highlighting the company’s visibility in industry diversity and inclusion efforts. The recognition, presented as part of a women‑focused networking and awards programme, follows a prior Stellantis honouree and underscores the automaker’s role in mentoring and talent development.