Price crash for car giant Stellantis after huge €22 billion writedown

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Price crash for car giant Stellantis after huge €22 billion writedown
Photo: Paul Sancya/AP/TT

The Netherlands-based car manufacturer Stellantis is taking a write-down of around 22 billion euros (approximately 235 billion kronor). Its shares, listed in Milan and Paris, plunged 15 percent after the announcement.

The costs are related to a major change in strategy to reduce costs and manage subdued demand for electric cars.

The automaker's 14 brands include Peugeot, Citroën, Fiat, Chrysler, Jeep and Opel.

The details of the new strategy, which follows similar moves by competitors such as Ford Motor and General Motors, will be presented in May, according to Stellantis.

Among other things, Stellantis will withdraw from a partly owned battery company, with South Korean LG as a partner. When the venture was launched, Stellantis said it would invest tens of billions in battery manufacturing in Windsor, in the Canadian province of Ontario.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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