Finance
Explainer-Global carmakers book $55 billion hit from EV rollback
Published by Global Banking & Finance Review®
Posted on February 6, 2026
2 min readLast updated: February 6, 2026
Quick Summary
Global carmakers face $55 billion in writedowns due to shifts in EV strategies, impacting major players like Stellantis, Ford, and GM.
Global Carmakers Face $55 Billion Writedown Amid EV Strategy Shift
Impact of EV Strategy Changes on Global Automakers
By Alessandro Parodi
Stellantis' Major Writedown
Feb 6 (Reuters) - Global carmakers have booked some $55 billion in writedowns in the past year as they scale back electric vehicle ambitions on a tough U.S. market under President Donald Trump, price wars in China and a more complex mix of vehicle types in Europe.
Ford's Shift to Gas and Hybrid Models
The latest to join the growing pile is Jeep-to-Fiat owner Stellantis, which revealed charges of around 22.2 billion euros ($26.5 billion) in the second half of 2025, dragging its shares down over 20% to six year lows.
General Motors' Investment Adjustments
Stellantis CEO Antonio Filosa said the writedowns were due to the "cost of over-estimating the pace of the energy transition", echoing similar comments by peers Ford, General Motors and Volkswagen.
Volkswagen's Product Overhaul
Legacy carmakers are struggling to keep up with new entrants, especially from China, and watered down electrification targets in Europe and in particular the U.S., a key market where the EV shift has stalled sharply.
STELLANTIS
The Franco-Italian automaker booked on February 6 its huge writedown, the biggest yet, which it said was linked to rejigging its product lineup to meet consumer demand and new emission regulations in the United States.
The writedown includes payments of approximately 6.5 billion euros expected to be made over the next four years.
FORD MOTOR
The Dearborn, Michigan-based company said in December it would take a $19.5 billion writedown and kill several EV models, and pivot hard into gas and hybrid models instead.
GENERAL MOTORS
The largest U.S. automaker by sales said in January it would take a $6 billion charge to unwind some electric-vehicle investments, including a $4.2 billion cash charge related to contract cancellations and settlements with suppliers.
VOLKSWAGEN/PORSCHE
Volkswagen, Europe's top carmaker, said last September it would take a 5.1 billion euro ($6 billion) hit from a far-reaching product overhaul at its Porsche unit, which delayed some EV models in favour of hybrids and combustion engine cars.
That included an around $3.5 billion impairment charge.
($1 = 0.8477 euros)
(Reporting by Alessandro Parodi; Editing by Adam Jourdan and Susan Fenton)
Key Takeaways
- •Global carmakers face $55 billion in writedowns.
- •Stellantis leads with a $26.5 billion charge.
- •Ford pivots to gas and hybrid models.
- •GM adjusts investments with a $6 billion charge.
- •Volkswagen delays some EV models for hybrids.
Frequently Asked Questions about Explainer-Global carmakers book $55 billion hit from EV rollback
1What is a writedown?
A writedown is an accounting term that refers to reducing the book value of an asset due to a decrease in its market value. This often reflects losses or impairments in financial reporting.
2What are electric vehicles (EVs)?
Electric vehicles (EVs) are cars that are powered by electric motors instead of internal combustion engines. They are considered more environmentally friendly due to lower emissions compared to traditional vehicles.
3What is a market reaction?
Market reaction refers to the response of investors and traders to news or events that affect the financial markets, often resulting in price changes for stocks or assets.
4What is an investment adjustment?
An investment adjustment is a change made to an investment portfolio, often in response to market conditions or company performance, to optimize returns or reduce risks.
5What is a product overhaul?
A product overhaul involves significant changes or updates to a product line, often to improve performance, meet new regulations, or adapt to changing market demands.
