HEMI V-8 RETURNS After $26 Billion Disaster

Stellantis just absorbed a staggering $26 billion loss after betting big on electric vehicles nobody wanted to buy, exposing the catastrophic consequences of prioritizing green mandates over consumer demand.

Story Snapshot

Stellantis announced a record-breaking €22.2 billion ($26 billion) writedown on February 6, 2026, the largest single charge by any automaker globally, after overestimating EV demand and stranding billions in battery investments.
The company cancelled key electric models like the Ram 1500 BEV and sold its stake in a Canadian battery plant while bringing back the beloved HEMI V-8 engine in a dramatic strategic reversal.
CEO Antonio Filosa admitted the company “over-estimated the pace of the energy transition” and distanced operations from “real-world needs,” signaling a shift toward customer-driven “freedom of choice” with hybrids and internal combustion engines.
Industry experts warn this is part of a $100+ billion EV write-off wave across automakers, with GM, Ford, and Volkswagen also taking massive losses on failed electric gambles.

The Biggest Automotive Writedown in History

Stellantis, parent company of iconic American brands like Jeep, Chrysler, and Ram, revealed a €22.2 billion charge to reset its business after years of chasing an electric vehicle dream that never materialized. The writedown includes €14.7 billion for scrapping unprofitable EV product plans, €5.4 billion for warranty problems and restructuring, and additional costs from canceling projects like the all-electric Ram 1500 pickup. Company shares plummeted 24-29% following the announcement, and shareholders will see no dividend for 2026 as the automaker scrambles to stabilize its balance sheet.

Government Mandates Meet Market Reality

Under former CEO Carlos Tavares, Stellantis pursued an aggressive electrification strategy designed to comply with anticipated regulatory mandates rather than respond to actual consumer preferences. The company invested heavily in battery platforms, supply chains, and manufacturing capacity for vehicles customers weren’t ready to purchase. High costs, inadequate charging infrastructure, and range anxiety kept buyers away from showrooms, leaving Stellantis with billions in stranded assets. This government-driven push for rapid electrification ignored fundamental market realities, forcing working families to shoulder the consequences of policy decisions disconnected from their needs and budgets.

A Strategic Pivot Back to Common Sense

New CEO Antonio Filosa is reversing course with a “freedom of choice” strategy that respects what consumers actually want. Stellantis is bringing back the powerful HEMI V-8 engine, reintroducing hybrid versions of popular models like the Jeep Cherokee, and committing $13 billion to North American products including extended-range electric pickups and SUVs. The company also sold its 49% stake in a Canadian battery plant to LG Energy Solutions, acknowledging the overcapacity created by unrealistic projections. This reset demonstrates what happens when businesses finally listen to customers instead of politicians—they deliver the trucks, SUVs, and performance vehicles that built America’s automotive legacy.

Industry-Wide Collapse of the EV Fantasy

Stellantis isn’t alone in this painful reckoning. General Motors took a $7 billion hit in 2025 with more losses expected in 2026. Ford is absorbing $19 billion in EV-related charges phased through 2027. Volkswagen wrote down $6 billion after cutting Porsche electric projects. John Murphy of Haig Partners called the industry’s EV shift “the single capital allocation mistake in the history of the automotive industry,” predicting over $100 billion in total write-offs. These numbers reveal a coordinated disaster driven by ESG ideology, climate activism, and regulatory overreach that ignored consumer sovereignty. The market is speaking clearly: Americans want affordable, reliable vehicles with the power and range to meet their daily needs, not expensive electric experiments that lose value faster than their batteries drain.

Stellantis maintains €46 billion in industrial liquidity, representing 30% of net revenues, providing cushion to weather this storm. The company faces €6.5-7.7 billion in cash payments over four years while projecting improvements in net revenue, operating margins, and cash flow through 2026. Full financial results release February 26, with a comprehensive strategic plan investor day scheduled for May 21. This correction, though painful, offers hope that market forces will finally prevail over the failed green energy agenda that has cost automakers, workers, and consumers dearly.