Core Viewpoint - Stellantis, the world's fourth-largest automaker, announced a significant reduction in its electric vehicle (EV) business, leading to a €22.2 billion (approximately ¥182 billion) loss provision, causing its stock price to plummet over 20% in both France and the U.S. markets [1][2] Group 1: Company Actions and Financial Impact - Stellantis plans to suspend its dividend for 2026 and aims to raise up to €5 billion (approximately ¥40 billion) through hybrid bond issuance to maintain financial stability [2] - The company is systematically scaling back its EV operations, including exiting the battery joint venture with LG Energy in Canada and halting production of the RAM 1500 electric pickup in the U.S. [2] - Stellantis is expected to incur a net loss of €19 billion to €21 billion (approximately ¥155 billion to ¥168 billion) in the second half of 2025 [2] Group 2: Industry Trends and Adjustments - The global automotive industry is undergoing a significant strategic shift, with major automakers like Ford and General Motors also announcing substantial asset write-downs due to similar adjustments in their EV strategies [3][4] - The cumulative losses from Stellantis, Ford, and General Motors due to EV business reductions amount to approximately ¥369.9 billion [4] - The shift in policy environment in the U.S. and Europe has led to a decline in EV sales, with General Motors and Ford reporting significant year-on-year drops in their EV sales for Q4 2025 [5][6] Group 3: Market and Policy Influences - The abrupt change in EV policies in the U.S. under the Biden administration, including the termination of the $7,500 federal tax credit, has weakened market demand for electric vehicles [5] - The European Union's decision to abandon the 2035 ban on internal combustion engine vehicles in favor of a "technology-neutral" carbon emission standard has also influenced automakers to adjust their strategies [6] - Stellantis is shifting focus to invest $13 billion in the U.S. market over the next four years, creating 5,000 jobs and concentrating on products that meet American consumer demands, such as larger pickups and SUVs [6] Group 4: Future Outlook and Consumer Behavior - Analysts predict that the coming years will see significant asset write-downs across major automakers as they reassess their investment directions [7] - Consumer enthusiasm for pure electric vehicles has not met expectations, with concerns over charging infrastructure, range anxiety, and high prices remaining significant barriers [8] - Many automakers are pivoting towards hybrid models as a transitional strategy, with Stellantis reviving its classic HEMI V8 engine and planning to produce over 100,000 units by 2026 [8][9]