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EXPLAINER-Global carmakers book $70 billion hit from EV rollbacks
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EXPLAINER-Global carmakers book $70 billion hit from EV rollbacks
Mar 12, 2026 5:58 AM

(Updates to add Honda ( HMC ), revises total tally, updates graphic)

By Alessandro Parodi

March 12 (Reuters) - Global carmakers have booked over

$70 billion in writedowns in the past year as they scale back

electric vehicle ambitions on a tough U.S. market under

President Donald Trump, price wars in China and a more complex

mix of vehicle types in Europe.

The latest to join the growing pile is Japan's Honda ( HMC )

, which on Thursday said it expected a hit of $15.7

billion over the next few years to restructure its EV business.

CEO Toshihiro Mibe said the group would focus on hybrids,

echoing moves by peers Stellantis ( STLA ), Ford,

General Motors ( GM ) and Volkswagen, which

backtracked on their EV ambitions or launched new combustion

engine models.

Legacy carmakers are struggling to keep up with new

entrants, especially from China, and watered down

electrification targets in Europe and in particular the U.S., a

key market where the EV shift has stalled sharply.

HONDA ( HMC )

Japan's second-largest automaker said on March 12 it expects

to lose 2.5 trillion yen ($15.7 billion) over the next few years

as it scraps the development of some planned EV models.

It added that it expects to lose as much as 570 billion yen

in the year to the end of March, versus a previous forecast for

a profit of 550 billion yen.

STELLANTIS ( STLA )

The Franco-Italian automaker booked on February 6

its huge writedown, the biggest yet, which it said was linked to

rejigging its product lineup to meet consumer demand and new

emission regulations in the United States.

The writedown includes payments of approximately 6.5 billion

euros expected to be made over the next four years.

FORD MOTOR ( F )

The Dearborn, Michigan-based company said in December

it would take a $19.5 billion writedown and kill several EV

models, and pivot hard into gas and hybrid models instead.

GENERAL MOTORS ( GM )

The largest U.S. automaker by sales said in January

it would take a $6 billion charge to unwind some

electric-vehicle investments, including a $4.2 billion cash

charge related to contract cancellations and settlements with

suppliers.

VOLKSWAGEN/PORSCHE

Volkswagen, Europe's top carmaker, said last

September it would take a 5.1 billion euro ($6 billion) hit from

a far-reaching product overhaul at its Porsche unit,

which delayed some EV models in favour of hybrids and combustion

engine cars.

That included an around $3.5 billion impairment charge.

($1 = 0.8477 euros)

($1 = 158.6900 yen)

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