Stellantis Unveils $26B Business Reset, Resulting in a 25% Share Drop
Automaker Experiences Significant Impact due to Shift in EV Strategy
On Friday, February 6, 2026, Stellantis N.V., the powerhouse behind renowned automotive brands such as Jeep, Chrysler, and Dodge, announced a jaw-dropping €22 billion ($26 billion) business reset. This news, which included the suspension of its 2026 dividend, sent ripples through global markets. The company’s shares took a nosedive, falling as much as 30% in the wake of the announcement, a decline that stands as one of the most dramatic single-day drops in the history of the automotive sector.
Major Charges Reflect Strategic Pivot
The bulk of these charges are a reflection of Stellantis’ strategic shift away from its ambitious electric vehicle (EV) plans. CEO Antonio Filosa conceded that the company had “overestimated the pace of the energy transition.” He revealed that €14.7 billion of the total charges were tied to the realignment of product plans to better match customer preferences and new U.S. emission regulations. Additional charges included €2.1 billion for resizing the EV supply chain and €4.1 billion in warranty costs.
Reset Marks Decisive Process
“The reset we have announced today is part of the decisive process we started in 2025, to once again make our customers and their preferences our guiding star,” Filosa stated in the company’s press release. In a further blow, the automaker revealed it would report a net loss for 2025 and announced plans to issue up to €5 billion in hybrid bonds to protect its balance sheet.
Industry Challenges with EV Transition
This dramatic reversal mirrors similar multi-billion dollar writedowns by competitors Ford ($19.5 billion) and General Motors ($7.1 billion), highlighting the wider industry’s struggles with the transition to electric vehicles. Despite this setback, Stellantis reported encouraging signs, with shipment volumes rising 11% year-over-year in the second half of 2025, driven by a 39% surge in North American sales.
Source: Stellantis Press Release