A growing industry consensus that the rapid, widespread adoption of electric vehicles (EVs) – once projected as an imminent revolution – has stalled significantly, prompting major automakers to take massive financial hits and scale back ambitious plans.

In the past year, global carmakers have written off more than $60 billion from their balance sheets related to EV over-investments.

Ford: Around $19.5 billion in restructuring and pullbacks (with EV models like the F-150 Lightning and Mustang Mach-E seeing sales reverse in 2025).

Stellantis (Vauxhall/Opel owner): €22 billion.

General Motors: Around $6-7.6 billion.

Others like Volkswagen, Honda, and Volvo also taking multi-billion hits.

Ford’s CEO Jim Farley is quoted as saying, “I think the customer has spoken. That’s the punchline,” after the company reported a $5 billion loss in its EV division for 2025.

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Even auto giants know it: the electric car boom is out of charge

World’s biggest manufacturers write off billions as they retreat from an EV boom that never was

“I think the customer has spoken. That’s the punchline,” said Jim Farley, the chief executive of Ford. The Telegraph has the story.

The American boss was speaking last week as his company unveiled a $5bn (£3.7bn) annual loss, barely two months after it had booked a shock $19.5bn write-down.

The cause?

An aggressive bet on electric vehicles (EVs) that backfired spectacularly.

In 2025, sales of the Mustang Mach-E crossover and the F-150 Lightning pickup truck – once hailed by Farley as the “truck of the future” – went into reverse.

Worse, the electric Model-E division has booked losses of more than $13bn since 2023.

Now it has consigned the F-150 to the dustbin and has scrapped much of its future EV plans, with the company set to put a greater emphasis on hybrids.

Ford isn’t the only automotive giant counting the costs of a failed bet on electric.

In the past year, the world’s biggest carmakers have written off more than $60bn from their balance sheets as they retreat from an EV boom that never was.

The figure includes a €22bn (£19bn) charge reported by Vauxhall owner Stellantis, along with a $7.6bn hit to General Motors, €5.1bn at Volkswagen Group, $4.5bn at Honda and $1.2bn at Volvo, among others.

“Most of the Western carmakers are now facing big issues,” says Felipe Muñoz, of Car Industry Analysis.

Broadly speaking, EV sales are growing. But a rapid shift to electric that both carmakers and politicians had hoped for has failed to materialise. “Many drivers are still not comfortable making the shift,” says Muñoz.

At the same time, net zero regulations are beginning to bite in the UK and Europe – with companies facing fines if they cannot meet increasingly stretching targets – just as low-price competitors from China have arrived to undercut them.

Many of those Chinese manufacturers are themselves trying to outrun a crisis, as sales at home grind to a halt.

All across the world, a grim reality for carmakers is setting in: drivers simply don’t want EVs in the volume they hoped.

Read the full story here.

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In late 2025 and early 2026, major legacy automakers announced massive write-downs totaling around $55-65 billion globally (estimates vary slightly by source, with some broader analyses reaching higher when including ongoing losses). These reflect scaled-back EV investments, canceled models, impaired platforms/factories, supplier contract settlements, and strategic resets.

Key Examples of Major Write-downs (Late 2025–Early 2026). Here’s a breakdown of the biggest hits reported:

Automaker	Writedown/Charge Amount	Timing/Details	Key Reasons/Impacts
Stellantis (Jeep, Ram, Chrysler, Fiat, Peugeot)	~$26 billion (€22.2 billion)	Announced February 6, 2026; largest single charge, tied to “business reset” in H2 2025	Overestimated EV pace; realignment to gas/hybrids; includes €14.7B in product/platform impairments + €6.5B restructuring (cash over 4 years). Led to net loss of €19-21B in H2 2025; suspended 2026 dividend; shares plunged 20-30%.
Ford	$19.5 billion	Announced December 2025; covers canceled models (e.g., F-150 Lightning changes) and asset disposals	Pivot to hybrids/extended-range; Model e division lost $4.8B in 2025 (ongoing losses expected $4-4.5B in 2026); total EV losses since 2022 exceed $16B; break-even pushed to 2029.
General Motors (GM)	$7-7.6 billion	Announced January 2026 (part of $7.1-8.8B in charges)	Reduced EV capacity; canceled programs (e.g., BrightDrop vans); supplier settlements; more charges expected in 2026.
Others (e.g., Volkswagen, Honda, Volvo, Porsche)	$3-6B+ each (contributing to total)	Scattered announcements (e.g., VW ~$3.5-6B linked to Porsche/EV overhaul)	Excess capacity, delayed models, job cuts; broader industry tally pushes to $55-65B+.

These are mostly non-cash (impairments reduce asset values on the balance sheet without immediate cash outflow), but portions involve real cash (e.g., supplier payouts, restructuring). They hit reported earnings hard, often leading to quarterly/full-year net losses.

Financial Health:

• Balance Sheet Strain: Writedowns erode equity/book value and can trigger credit downgrades (e.g., Stellantis downgraded in February 2026 due to lower projected margins and cash flow recovery delays).
• Profitability Hit: Massive one-time losses drag down net income (e.g., Stellantis expects low single-digit margins in 2026; Ford’s adjusted EBIT fell sharply).
• Cash Flow & Liquidity: Some cash outflows (e.g., Stellantis’ €6.5B+ over years) require bond issuances or dividend cuts to preserve liquidity.
• Stock Market Reaction: Shares often drop sharply on announcements (Stellantis -20-30%; broader sector pressure), though some rebound if investors view the reset as clearing the deck (e.g., GM stock surged post-charge due to strong cash generation elsewhere).

Strategic Shifts:

• Pivot from “all-in” EVs to hybrids, plug-in hybrids, or extended-range models as bridges.
• Delayed/canceled pure-EV projects, reduced production capacity, job cuts, and supplier impacts.
• Focus on profitable segments (e.g., trucks/SUVs in U.S., where demand remains strong).
• Acknowledgment that consumer adoption is slower than projected—echoing comments like Ford CEO Jim Farley’s “the customer has spoken.”

Industry-Wide Ramifications:

• Signals over-investment in EVs during the hype phase (2021-2024), driven by policy incentives and forecasts.
• Contributes to the “EV boom out of charge” narrative: slower global growth in key markets (U.S. dips, China cools post-subsidies).
• Doesn’t kill electrification—many companies still commit long-term (e.g., Ford targets 2029 break-even)—but forces realism, cost-cutting, and hybrid emphasis.
• Suppliers and battery partners face ripple effects (canceled contracts, reduced orders).

In short, these write-downs aren’t the end of EVs but a painful correction after mismatched expectations vs. reality.