Global car makers reveal $55 billion in electric‑vehicle write‑downs as demand stalls. Discover the causes and what’s next for the industry.
In the past twelve months, the world’s biggest automakers have collectively recorded roughly $55 billion in electric‑vehicle (EV) write‑downs. The sharp reversal follows a perfect storm of weak consumer demand, fierce price competition in China, and shifting regulatory pressures across the United States and Europe.
Stellantis Takes the Biggest Hit
Stellantis disclosed a write‑down of €22.2 billion (about $26.5 billion) for the second half of 2025. The announcement sent the company’s shares tumbling more than 20%, landing at a six‑year low. CEO Antonio Filosa admitted the loss stemmed from “over‑estimating the speed of the energy‑transition,” a sentiment echoed by peers at Ford, General Motors and Volkswagen.
The write‑down reflects a comprehensive restructuring of Stellantis’s product portfolio to better match evolving consumer preferences and new emissions standards in the U.S. Roughly €6.5 billion of the charge will be spread over the next four years, covering restructuring costs and operational adjustments.
Ford Shifts Away From EVs
In December 2025, Ford announced a $19.5 billion impairment and cancelled several EV models under development. The Detroit‑based manufacturer said it would double‑down on internal‑combustion engines and hybrids to protect profitability, acknowledging that EV demand has not accelerated as expected.
General Motors Pulls Back Investment
By January 2026, General Motors – the United States’ top seller – revealed a $6 billion expense to scale back its EV investments. Of this amount, $4.2 billion is a cash outlay tied to contract terminations and supplier settlements.
Volkswagen’s Porsche Restructuring
Europe’s largest car group, Volkswagen, reported a €5.1 billion (≈$6 billion) loss linked to a deep‑dive restructuring of its Porsche brand in September 2025. The plan includes postponing a number of EV launches in favour of hybrids and conventional‑engine models, with roughly $3.5 billion attributed to asset impairments.
Why Traditional Brands Are Struggling
Analysts point to three converging challenges:
- Intense competition from new entrants, especially Chinese manufacturers, which are offering lower‑priced EVs and eroding market share.
- Regulatory uncertainty, particularly in the United States where policy direction has shifted under different administrations.
- Changing consumer preferences in Europe, where many buyers now favour plug‑in hybrids as a compromise rather than full‑electric models.
What the Future Holds
The rapid “all‑electric” ambitions of the past few years are being re‑evaluated. Automakers are now crafting more flexible product strategies that blend battery‑electric, hybrid, and internal‑combustion powertrains. This diversification aims to hedge against market volatility while preserving margins.
For investors and industry watchers, the key takeaway is clear: the road to a fully electrified fleet will be longer and more nuanced than previously projected. Stay informed on the evolving landscape and discover how the next wave of mobility solutions may reshape the market.