Stellantis is abandoning various electric vehicle (EV) car and van projects to ‘better align the company with the real-world preferences of its customers’. The initiative comes at a cost of £19 billion and is driven by a reduction in demand for EVs in America.
Ford announced in December that it will suffer losses of almost £15bn this year, for similar reasons. GM also recorded a £5bn loss last year, due to dwindling EV sales.
Over the past five years, Stellantis has invested significantly in EV development and says that journey will ‘continue at a pace that needs to be governed by demand rather than command’. As such, the company will grow its range of hybrid and internal combustion engines to offer customers greater choice.
Stellantis CEO Antonio Filosa said: “This largely reflects the cost of over-estimating the pace of the energy transition that distanced us from many buyers’ real-world needs, means and desires. They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new team.”
Almost £10bn will be invested over the next four years to drive growth in the US, which will include five new vehicles. Some existing products, including an electric RAM pick-up truck, are being cancelled.
The news comes seven months after it was revealed that Stellantis was abandoning its hydrogen fuel cell programme as a fuel option for its light commercial vehicles.
