Stellantis expects €2.3 billion first half loss as restructuring costs, US tariffs hit
Updated / Monday, 21 Jul 2025 11:17
Stellantis said today it expected the hit from restructuring costs and the initial impact of US tariffs to have pushed the carmaker to a €2.3 billion loss in the first half of the year.
The owner of brands including Fiat, Peugeot, Chrysler and Jeep said its initial estimate was that tariffs imposed by US President Donald Trump on U.S. imports would have cost it €300m, due to lower shipments and production cuts as the company adjusted manufacturing levels to the trade duties.
North America shipments, or deliveries of cars to dealers, distributors or retail and fleet customers, declined by 25% year-on-year in the second quarter, it said.
Stellantis’ preliminary first half results, which compared with a €5.6 billion net profit a year earlier, underscore the carmaker’s ongoing struggle and the challenge for new CEO Antonio Filosa, who was appointed in May after poor results in 2024 led to the ousting of former boss Carlos Tavares.
The carmaker’s shares fell 2% in early trade, underperforming a 0.6% drop in Milan’s broader market. They are now down 37% since the start of the year.
Last year, Stellantis imported over 40% of the 1.2 million vehicles it sold in the US, mostly from Mexico and Canada. In April this year, the company said it had reduced vehicle imports in response to tariffs and would calibrate “production and employment to reduce impacts on profitability”.
Stellantis said it booked €3.3 billion in pre-tax net charges for the first half due to programme cancellation costs, including one for hydrogen propulsion development which it recently decided to discontinue, as well as changes to its manufacturing platforms as it makes changes to target demand for hybrid vehicles.
It also mentioned the net impact of alignment on the emissions regulations in the US where authorities in June published the final ruling on the Corporate Average Fuel Economy (CAFE) standards, which regulate how far vehicles must travel on a gallon of fuel.
The carmaker, which earlier this year suspended its forecasts for 2025 results, said it had taken the unprecedented decision to publish unaudited preliminary financial data to bring analyst consensus forecasts more in line with the group’s actual performance, in the absence of an official guidance.
Its first-half revenue totalled €74.3 billion compared to €85 billion in the first half of 2024, but marking an improvement from the second half of last year when revenue totalled €71.8 billion.
“Results reflect the early stages of actions being taken to improve performance and profitability, with new products expected to deliver larger benefits in the second half of 2025,” JPMorgan analysts said in a note.
Stellantis said it burnt through €2.3 billion of cash in the first half.
Overall second-quarter shipments fell by 6% compared to a year earlier, to an estimated 1.4 million vehicles, it said.
