By Adria Calatayud

Jeep maker Stellantis said it would book charges of about 22.2 billion euros ($26.15 billion) as part of a shift away from electric vehicles, the latest automaker to dial back plans for battery-powered cars amid weaker-than-expected demand.

Regulatory changes and subdued demand from Americans have prompted several carmakers to retrench from their EV ambitions. Stellantis's move comes after Ford Motor in December said it expected to take about $19.5 billion in charges, mainly tied to its EV business.

Stellantis said Friday that the bulk of the charges, 14.7 billion euros, related to changes in its lineup largely due to significantly reduced expectations for EVs, as it moves to realign its products with customer preferences and new emission regulations in the U.S.

The company said it would book a 2.1 billion-euro charge on the resizing of its EV supply chain and an additional 5.4 billion-euro charge related to other changes in its operations.

"The charges announced today largely reflect the cost of overestimating the pace of the energy transition that distanced us from many car buyers' real-world needs, means and desires," Stellantis Chief Executive Antonio Filosa said.

As a result, Stellantis said it expects to report a net loss for the second half of 2025 of between 19 billion and 21 billion euros and that it would suspend dividend payments. It added that it would issue up to 5 billion euros in bonds to shore up its balance sheet.

Filosa, who took the helm last year after the departure of former boss Carlos Tavares in late 2024, has sought to bolster the group's U.S. business and in October outlined plans for a $13 billion investment to boost manufacturing in the country.

The company said it was starting to see early benefits from actions it took last year. It projected improvements in net revenue, adjusted operating profit margin and cash flow this year.

Stellantis separately said it shipped 1.5 million units in the fourth quarter, a 9% increase compared with the year-earlier period. Growth in North America offset a decline in Europe, it said.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

February 06, 2026 02:45 ET (07:45 GMT)

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