Electric write-off pushed Stellantis into a loss of 20 billion euros!

At the beginning of the month, Stellantis announced that it would write off 22.2 billion euros in the business with electric vehicles, emphasizing the adjustment of the demand supply and the alignment with the new American regulations on emissions.

The write-off includes cash payments of approximately 6.5 billion euros, which are expected over the next four years, and will be recorded in the operating results for the second half of 2025.

The total amount of write-offs in 2025 is EUR 25.4 billion, the administration announced on Thursday.

Last year’s results “reflect the cost of misjudging the pace of the energy transition,” Chief Executive Officer Antonio Filosa reiterated a statement from earlier this month.

When write-offs and one-time items are excluded, the company operated with an adjusted operating loss of 1.38 billion euros in the period from July to December. The net loss was 20.1 billion euros.

Net income jumped in the period from July to December by ten percent compared to the same period last year, to 79.25 billion euros, following the pace of growth in deliveries.

In the whole of last year, it was slightly lower than in 2024, slipping to 153.3 billion euros under the influence of unfavorable currency exchange rates and net lower prices in the period from January to June.

The company ended last year with a net loss of 22.3 billion euros. In 2024, it was operating in a surplus of 5.5 billion euros.

The management repeated on Thursday that in 2026 it expects a five to seven percent higher net income.

With weak demand and new U.S. emissions regulations, many Western automakers are abandoning battery electric models due to both new market players, especially from China, and a more complex mix of vehicle types in Europe, Reuters notes.