EY automotive published a study in mid-April 2026. It describes nearly €60 billion in impairments and write-downs on electric vehicle (EV) projects by European and US carmakers in 2025 (or spanning into early 2026 reporting).

European and US carmakers recorded nearly €60 billion in impairments and write-downs on electric vehicle (EV) investments during 2025. These were not pure operating cash losses in every case but accounting charges on overbuilt battery factories, development programs, joint ventures, and specific models that no longer made economic sense due to weaker demand.

19 largest global automakers: Combined operating profit collapsed 59 % (from €143 bn to €59 bn).

Average profit margin dropped from 6.7 % to 2.8 %; several companies slipped into the red.

The €60 bn figure is primarily accounting impairments on battery factories, development programs, joint ventures, and specific EV model lines that no longer make economic sense.

German manufacturers were hit harder than the global average: revenue –4.1 %, new-car sales –2 %, and a sharp drop in China (their former profit engine).

EY expert Constantin Gall explicitly described the situation as a “deep crisis — for some companies even potentially existential.”

Major Individual Write-Downs (2025):

• Stellantis (Peugeot, Fiat, Opel, Jeep etc.): ~€22 bn
• Ford: ~€18–19.5 bn
• Honda: up to ~€14.5–16 bn (announced pivot away from aggressive EV plans)
• General Motors: ~€7 bn
• Porsche (VW Group): ~€3.1 bn

Hybrids and efficient combustion engines proved far more resilient in Europe and the US, while Chinese brands (BYD etc.) continued gaining share with cheaper models.

Demand for pure battery EVs grew much slower than carmakers and policymakers had forecast once subsidies were cut or removed (Germany ended its big purchase bonus earlier due to budget reasons).

Persistent real-world barriers remained:

• High purchase prices vs. hybrids/ICE
• Charging infrastructure gaps and range anxiety
• Higher electricity costs in some markets
• Consumer preference for hybrids as a practical “bridge” technology

Add Chinese competition, US tariff/policy shifts, and high European energy/labor costs — and the overbuilt EV capacity became a “money pit.”

Carmakers are now reacting pragmatically: pausing battery plants, extending ICE/hybrid lifecycles in key segments, and reallocating capital. This is not a full retreat from electrification — global EV sales (led by China) are still rising — but a necessary reset to match actual customer demand and economics.

Germany’s auto sector (and its vast supplier network) is a cornerstone of exports and employment.

The combination of:

• Massive prior EV investments under EU CO₂ rules and national green policies
• China market share collapse
• High domestic costs

…has triggered unprecedented restructuring talks (plant idlings, job cuts, multi-billion savings programs at VW and others). Older warnings (e.g., Der Spiegel 2024 “Electric Shock”) have now materialised in hard numbers. BMW still posted a respectable 7.6 % margin, while Toyota, Suzuki, and Kia topped profitability lists with hybrid-heavy strategies.

The €60 billion figure is factual and underscores a painful reality check: top-down mandates and overly optimistic corporate forecasts met stubborn market signals. Rigid ideology (rapid forced full electrification) collided with customer choice, infrastructure reality, and competition. The industry is correcting course toward a technology-neutral mix — efficient ICE, strong hybrids, and BEVs where they genuinely make sense for buyers.

It’s not the end of electric cars — Chinese brands are thriving, and technology will keep improving — but a stark reminder that top-down timelines and subsidies can’t override economics and customer choice forever.

Germany’s car heartland is now adapting the hard way: slower, more pragmatic decarbonization paired with hybrids and targeted incentives looks like the viable path forward.