The global automotive industry has absorbed at least $65B in losses over the past year as carmakers dramatically scale back their electric vehicle ambitions, with executives warning of more pain ahead, according to the Financial Times.
A sweeping reversal in U.S. climate policy under President Donald Trump has forced manufacturers to overhaul their EV product and investment plans. Companies that made the most aggressive pivot away from gasoline-powered vehicles have been hit hardest.
Stellantis (STLA), owner of Peugeot, Fiat, and Jeep, took the most dramatic action this month, recording a $26B charge to scrap fully electric models and revive its popular 5.7-liter “Hemi” V8 engine in the U.S. The company also announced plans to bring back diesel engines for several European models. The writeoff triggered a share selloff that slashed approximately $6B from its market value.
Ford (F) disclosed a $19.5B writedown after canceling its electric F-150 pickup truck, while Volkswagen (VWAGY), Volvo Cars (VOLAF), and Polestar (PSNY) have all suffered significant hits to their EV programs.
Honda (HMC), the only Japanese automaker to commit to ending gasoline and diesel vehicle production by 2040, forecast $4.5B in annual EV-related losses, including $1.9B in writedowns. General Motors (GM) has written down $7.6B on its EV operations.
Industry executives now expect EVs to account for just 5% of the U.S. new vehicle market—roughly half the current level—following the cancellation of EV credits and further rollback of emissions regulations.
Bernstein analyst Stephen Reitman told the FT that automakers failed to offer vehicles meeting consumers’ price and range expectations while charging infrastructure remained inadequate.
Despite the setbacks, GM chief executive Mary Barra maintained that electric vehicles remain the company’s “end game,” with other carmakers pledging continued long-term investments in the transition away from internal combustion engines.