Global carmakers have taken roughly $55 billion in writedowns over the past year as many scale back electric vehicle (EV) ambitions amid shifting market dynamics, regulatory changes and softer-than-expected demand in key regions, industry data shows.
The wave of impairment charges reflects a strategic rethink among legacy carmakers that had previously committed heavily to electrification but are now adjusting their product lineups and investments in response to new commercial and regulatory realities.
Stellantis, the maker of Jeep and Fiat brands, announced the largest portion of the writedowns, reporting a €22.2 billion (about $26.5 billion) charge in the second half of 2025 tied to its EV strategy reset. The company said the adjustment was driven by over-estimating the pace of the energy transition and the need to align its offerings with actual consumer demand and regulatory requirements, particularly in the United States. Stellantis’ announcement also led to a sharp fall in its share price, which slid more than 20 percent to multi-year lows.
Ford Motor Company recorded a $19.5 billion writedown at the end of 2025, including cuts to several planned EV models, as it pivots toward hybrid and internal combustion engine vehicles. General Motors followed with about $6 billion in charges earlier this year, linked to unwinding some EV investments and contractual costs. Volkswagen Group also booked around $6 billion in charges related to a restructure of its EV product roadmap, which included delays and re-prioritisation of hybrid and combustion engine models at its Porsche unit.
Industry analysts say these writedowns stem from a combination of evolving consumer preferences, intense competition especially from Chinese EV manufacturers and the rollback of supportive policies in major markets such as the United States and Europe. In the U.S., changing regulatory priorities under the current administration have reduced the incentives that previously bolstered EV demand, prompting automakers to reassess their electrification timelines and investment levels.
The collective impact of the writedowns signals a broader recalibration within the global automotive sector, as legacy manufacturers balance the push toward electric vehicles with continued demand for hybrids and traditional internal combustion engine models in varied markets.
