Stellantis posts huge loss after over-ambitious EV pivot

(Sharecast News) - Vehicle maker Stellantis on Thursday posted a large annual loss and pinned its hopes on a return to polluting models amid a backlash against electric cars. The auto giant also warned that it would take a bigger hit from US tariffs in the current fiscal year.

It revealed that charges to reverse its pivot to electric vehicles had now blown out to €25.4bn after a €22bn writeoff earlier this month as it axed unprofitable models and cut mattery manufacturing capacity.

Stellantis forecast its exposure to President Donald Trump's global tariff war would rise to €1.6bn this year from €1.2bn.

The Peugeot, Fiat and Jeep maker posted a full-year net loss of €22bn driven by warranty costs and a €200m provision related to the motor finance mis-selling scandal in the UK.

In response to growing competition from Chinese manufacturers and a decline in cash credit for EV purchases, chief executive Antonio Filosa dumped plug-in hybrids and reintroduced the popular V8 petrol-guzzling "Hemi" engine.

He said the writedown "reflects the cost of overestimating the pace of the energy transition".

"In 2026 our focus will be on continuing to close the execution gaps of the past, adding further momentum to our return to profitable growth," Filosa said.

Auto makers globally are retreating from EV investment as Trump cuts subsidies and funding for charging infrastructure, while also axing emissions rules that allow more polluting vehicles to be produced.

Reporting by Frank Prenesti for Sharecast.com