Three of the world’s largest carmakers—GM, Ford, and Stellantis—have recorded a staggering $52.1 billion in write‑downs linked to their electric‑vehicle (EV) programs, eclipsing the combined profits those companies earned in 2024.
Stellantis announced a $26 billion charge as it reevaluated its EV strategy, followed by GM’s $6.6 billion hit and Ford’s $19.5 billion write‑off. Together, the losses have wiped out more than the $34.1 billion in 2024 earnings that the trio generated.
The downturn comes amid a shifting policy landscape. The European Union dropped its 2035 EV mandate, and the United States rolled back fuel‑economy standards that had been set under the previous administration. The federal EV tax credit expired at the end of the third quarter, removing a key incentive for buyers.
Demand for high‑end EVs has been softer than expected, with models such as the Ford F‑150 Lightning—already canceled—failing to attract the projected sales volume. The result has forced the automakers to rethink their EV roadmaps, potentially leaving them exposed if the market rebounds.
Stellantis’ $26 billion charge is split into cash payments of 6.5 billion euros (about $7.7 billion) over four years, and a further 14.7 billion euros (roughly $17.3 billion) that will be deducted from the company’s 2025 second‑half results. The charges are not expected to affect adjusted operating income.
The company has also shifted its lineup: it will no longer offer an all‑electric Ram pickup, opting instead for an extended‑range hybrid version. Other EVs in its portfolio, such as the Dodge Charger, will be replaced by gasoline variants, and the classic Hemi V8 engine is returning to the lineup.
Ford’s pivot mirrors Stellantis’s approach. In December, the Michigan‑based automaker announced a move toward hybrids and extended‑range EVs, trimming its full‑electric ambitions. The company will incur a $19.5 billion charge related to the changes, and it has canceled the Lightning pickup in its original form as well as a three‑row EV SUV and a planned electric commercial van.
“We can’t allocate money for products that won’t make money,” explained Ford’s CEO in an interview. “Customers in the U.S. weren’t willing to pay for those vehicles.”
With the big three reducing their electric investments, the question remains whether they will be able to rebound if consumer interest in EVs picks up again.
