Stellantis has trimmed down its global EV plans in a business “reset” to “meet customer preferences and to support profitable growth”.

The Vauxhall, Citroën and Peugeot parent firm said it would realign its strategy to meet the real-world preferences of its customers, scaling back electric vehicle development.

This includes cancelling products such as the previously planned Ram 1500 BEV pickup, in a move to “align with customer demand and the changes to US regulatory frameworks”, referring to the removal of EV incentives by the Trump administration.

Stellantis is also selling its 49% stake in the NextStar Energy battery manufacturing JV in Ontario to its partner, LG Energy Solution, although it said it remains a committed customer and would continue to source battery products from NextStar.

Stellantis said it had become a leader in electric vehicles over the past five years and would continue to be at the forefront of their development.

But it said that journey would continue “at a pace that needs to be governed by demand rather than command”.

And the global automaker said it would be a “beacon for freedom of choice, including for those customers whose lifestyles and working requirements make the company’s growing range of hybrid and advanced internal combustion engine vehicles the right solution for them”.

The OEM said it would take a €22.2bn (£19.3bn) hit on its change of strategy and announced that it would not pay a dividend to shareholders in 2026.

Chief executive Antonio Filosa said the charges “largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires”. He also said they reflect the impact of “previous poor operational execution”.

The automaker, which announces its new strategic plan in May, revealed in January that it will officially discontinue all plug-in hybrid electric vehicles sold under its Jeep and Chrysler brands in North America.

And in Europe, it’s pulled the plug on plans to launch hydrogen vans, after warning in July 2025 that the market shows “no development prospect at mid-term”.

Stellantis said it was already seeing early benefits from actions taken in 2025, including a return to positive volume growth. Previous changes include the “re-empowerment of regional teams, freeing them to make decisions based on their direct knowledge of the preferences of the customers they serve”.

Latest new car registration figures from Jato Dynamics show demand for BEVs and PHEVs in Europe continues to soar. Battery electric vehicles (BEVs) saw notable growth in 2025, with volumes increasing by 29% compared to 2024 to claim a market share of 20%.

But sales of BEVs in the US face significant headwinds from subsidy sunsets and infrastructure gaps.

According to S&P Global Mobility, a notable downshift for BEV sales and market share is expected through the first half of 2026 in the US, as automakers and consumers adjust to post-incentive conditions. The BEV share of sales in January is estimated to be 5.3%.

The move comes after the Trump administration significantly overhauled electric vehicle incentives by ending the federal tax credits for purchasing and leasing EVs much earlier than originally planned.