Detroit’s three major automakers have taken a combined total of about $50 billion in write‑downs as they pull back on their electric‑vehicle (EV) initiatives—a loss roughly comparable to the U.S. government’s bailout package during the Great Recession.

U.S. EV sales plunged 36 % in Q4 2025, dropping to just 234,171 units. The decline is so sharp that it might even justify buying a Jeep Wrangler—if Stellantis, the parent of the Jeep brand, weren’t the one feeling the pain. Last week, rating agencies Standard & Poor’s and Moody’s lowered Stellantis’s credit rating to its lowest investment‑grade tier, essentially one step above junk.

This downgrade came after Stellantis revealed in early May that it had taken $26 billion in write‑downs in the second half of 2025, after severely over‑projecting EV adoption. CEO Antonio Filosa admitted the company had lost touch with car buyers’ real‑world needs, means and desires.

Meanwhile, GM revealed a $7.6 billion write‑down in January, warning that further losses could loom this year. A month earlier, Ford announced it would incur $19.5 billion in write‑downs across 2025‑2026. Ford’s chief executive, Jim Farley, said the company is now slamming the brakes rather than pouring billions into a future where large EVs will never make money.

PHOTO CREDIT: Pixabay