Stellantis takes €22bn hit after ‘overestimating’ pace of shift to EVs

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The carmaker Stellantis has said it will take a €22bn (£19.1bn) charge and sell a stake in its battery joint venture after admitting that it “overestimated” the pace of the shift to electric vehicles.Shares in the European-based carmaker, which owns marques including Peugeot, Fiat, Jeep and Citroën, plunged after it said that the move was part of a reset of its business as it also admitted “poor operational execution”.Antonio Filosa, the chief executive of Stellantis, said: “The charges announced today largely reflect the cost of overestimating the pace of the energy transition that distanced us from many car 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.

”Its shares closed down 25% in Milan on Friday – and have slumped by more than half over the past year – to their lowest since 2021, wiping nearly €6bn off its market value,The company said that the charges included cash payments of €6,5bn, to be paid out over the next four years,Almost €15bn of the charges relate to “realigning product plans with customer preferences and new emission regulations in the US, largely reflecting significantly reduced expectations for battery electric vehicles (BEVs)”,Stellantis said it would not be paying a dividend to shareholders in 2026.

Stellantis has taken moves including cancelling its previously planned Ram 1500 BEV, an electric truck it had claimed was “set to push boundaries”.The company said cancellation of projects, including the Ram 1500, reflected “the need to align with customer demand and the changes to US regulatory frameworks”.While sales of electric vehicles in Europe have soared, demand in the US has collapsed after the Trump administration withdrew a $7,500 (£5,527) consumer tax credit, and is looking to remove regulations aimed at curbing car emissions.Stellantis said it had become a leader in EVs over the past five years and would continue to develop them.However, it added: “That journey continues at a pace that needs to be governed by demand rather than command.

”Stellantis also plans to sell its 49% stake in its battery joint venture in Canada with NextStar Energy to South Korea’s LG Energy Solution.“We have gone deep into every corner of our business and are making the necessary changes,” Filosa said.“In 2026, our unwavering focus is on closing past execution gaps to add further momentum to these early signs of renewed growth.”Despite the scale of the announcement, analysts believe that Stellantis will still have to consider factory closures and a reduction in output.“Given that this announcement does not include any factory closures we do not think the news yet resets fully the cost base at Stellantis, which is likely necessary on the reduced market shares,” said analysts at Citi in a note to investors.

“We think any upside to Stellantis most likely features capacity reductions to fully reset the North America and European businesses.”Last month, the rival Ford announced a $19.5bn charge, while General Motors recently reported a $6bn hit.In 2022, Carlos Tavares, the former chief executive of Stellantis, set a goal for 100% of sales in Europe, and 50% in the US, to be of BEVs by the end of the decade.On Friday, Stellantis said its push into the EV market needed to be “governed by demand rather than command”.

“The success of companies like [China’s] BYD suggests there are plenty of people willing to take the leap,” said Russ Mould, investment director at AJ Bell.“That begs the question as to whether Stellantis’s frustration over its EV sales is linked to market issues or that drivers simply don’t like its vehicles.”The company is set to present an update of its long term strategy to investors and analysts at a capital markets day in May.Last year, Stellantis made what it called the largest ever investment in its US operation, $13bn over four years, introducing 10 new products and creating 5,000 jobs.
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What a ​four-​year-​old ​taught ​us ​about the ​magic of ​baking​ a chocolate ​cake

Valentine’s is on the horizon, which means we are about to officially enter chocolate cake season – that soft-focus part of winter when confectionery and romance blur together. For our four-year-old goddaughter, it is always that time of year. Just hearing the two words together makes her roll her eyes and roll out her little tongue in anticipation of pleasure, like a cartoon kid. When we told her we would come and bake a chocolate cake with her, there were squeals of joy.Settling on a recipe was the first challenge – Ravneet Gill’s fudgy one, Felicity Cloake’s perfect one and Benjamina Ebuehi’s traybaked one were all contenders

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Rachel Roddy’s recipe for pork ragu with herbs (for gnocchi or pasta) | A kitchen in Rome

It’s 10.30am and steam carrying the smell of onions, beans, cabbage and braised meat escapes from the kitchen in the corner of box 37 on Testaccio market. In the small kitchen is Leonardo Cioni, a tall chef from San Giovanni Valdarno, midway between Florence and Arezzo, who, for the past three-and-a-half years, has run box 37 as Sicché Roba Toscana, which roughly translates as “therefore Tuscan stuff”. The escaping steam is effective advertising, leading eyes to the blackboard above the counter to discover exactly what is going on in the back.Always on the menu is lampredotto

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Rich plums and ripe tomatoes: Australia’s best-value fruit and veg for February

Tomatoes ripe for cooking, cheap watermelon and cucumbers for $2 a piece – but it’s the final call for apricots, cherries and mangoesGet our weekend culture and lifestyle emailJuicy watermelon, deep-purple plums and ripe roma tomatoes are some of the vibrant fruit and veg highlights this month, says Graham Gee, senior buyer at the Happy Apple in Melbourne.“Tomatoes are plentiful, in particular the saucing varieties,” he says. “Roma varieties are sold nice and ripe, ready to make passata.” Cooking tomatoes are roughly $2 a kilo at the Happy Apple, with Australian field tomatoes going for about $5 a kilo in supermarkets.Watermelon is “very cheap”, says Michael Hsu, operational manager at Sydney’s Panetta Mercato

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How to make moreish cookies from store-cupboard odds and ends – recipe | Waste not

I often eat a bag of salty crisps at the same time as a chewy chocolate bar, alternating bite for bite between the two, because the extreme contrast of salt from the chips and the sweetness of the chocolate fire off each other and create an endorphin rush. The same goes for these cookies, adapted from a recipe by Christina Tosi at New York’s legendary Milk Bar.Christina Tosi writes in Gourmet Traveller Australia how she first learned to make these cookies at a conference centre on Star Island, New England, where they’d bake them each week with a hodge-podge of different ingredients. Being on an island, they didn’t always have access to what they wanted, so they had to come up with a new recipe every week using whatever they had. In the spirit of the recipe’s origins, I’ve adapted Tosi’s recipe for the UK, and made it flexible, so you can raid your own store-cupboards and adapt and invent your own version from it

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Camilla Wynne’s recipes for blood orange marmalade and no-bake marmalade mousse tart

If you’re intimidated by making marmalade, the whole-fruit method is the perfect entry point. Blood oranges are simmered whole until soft, perfuming your home as they do so, then they’re sliced, skin and all, mixed with sugar and a fragrant cinnamon stick, and embellished with a shot of amaro. Squirrel the jars away for a grey morning, give a few to deserving friends, and be sure to keep at least one to make this elegant mocha marmalade mousse tart. A cocoa biscuit crust topped with a chocolate marmalade mousse and crowned with a cold brew coffee cream, it’s a delightful trifecta of bitterness that no one will ever guess is an easy no-bake dessert.If you’re not up for preserving, make this using shop-bought thick-cut marmalade

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The dump dinner: spaghetti is now being served straight on to the table – but why?

Name: Dump dinners.Age: Horribly new.Appearance: Feeding time at the zoo, but for humans.I’ve just Googled this. Apparently a dump dinner is a make-ahead slow cooker recipe