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The publication points out that these losses might rise considerably. The significant change in US policy, which has removed financial incentives for electric vehicle purchasers and is revising efforts to cut vehicle emissions, has compelled car manufacturers to reevaluate their strategies and investment plans. Companies that have made more progress in switching to electric vehicles have been most affected by Washington's change in stance.
In early February, the European car company Stellantis revealed it would record a loss of about €22 billion in its 2025 financial report. This decision was made because they planned to stop making certain electric vehicle models and would restart production of the well-liked 5.7-liter Hemi V8 engine in the United States.
Ford Motor, an American competitor of Stellantis, announced in December that it would face a one-time expense of $19.5 billion as a result of restructuring its electric vehicle production assets. The company also stopped its plans to introduce the F-150 electric pickup truck.
Volkswagen, Volvo Cars, and Polestar have also reduced their efforts in expanding their electric vehicle programs significantly.
Honda Motor, the sole Japanese car maker still dedicated to stopping the production of gasoline and diesel vehicles by 2040, recently stated it anticipates a yearly loss of $4.5 billion in 2026, partly because it is evaluating its plan for electric vehicles. Meanwhile, Bernstein analyst Steven Reitman points out that, apart from American politics, the challenges faced by Stellantis and other electric vehicle companies are due to the fact that, in their effort to imitate Tesla's initial success, they have overlooked the needs of car enthusiasts.
He noted that everyone was excited about Tesla's high valuations. However, consumers were “left behind.”
According to Reitman, manufacturers have not provided electric vehicles that align with what consumers expect in terms of cost and driving range. The charging infrastructure also remains insufficient.
source: ft.com
In early February, the European car company Stellantis revealed it would record a loss of about €22 billion in its 2025 financial report. This decision was made because they planned to stop making certain electric vehicle models and would restart production of the well-liked 5.7-liter Hemi V8 engine in the United States.
Ford Motor, an American competitor of Stellantis, announced in December that it would face a one-time expense of $19.5 billion as a result of restructuring its electric vehicle production assets. The company also stopped its plans to introduce the F-150 electric pickup truck.
Volkswagen, Volvo Cars, and Polestar have also reduced their efforts in expanding their electric vehicle programs significantly.
Honda Motor, the sole Japanese car maker still dedicated to stopping the production of gasoline and diesel vehicles by 2040, recently stated it anticipates a yearly loss of $4.5 billion in 2026, partly because it is evaluating its plan for electric vehicles. Meanwhile, Bernstein analyst Steven Reitman points out that, apart from American politics, the challenges faced by Stellantis and other electric vehicle companies are due to the fact that, in their effort to imitate Tesla's initial success, they have overlooked the needs of car enthusiasts.
He noted that everyone was excited about Tesla's high valuations. However, consumers were “left behind.”
According to Reitman, manufacturers have not provided electric vehicles that align with what consumers expect in terms of cost and driving range. The charging infrastructure also remains insufficient.
source: ft.com
