Stellantis reports $3.5 billion first-half loss, warns of worse ahead on tariff woes

MILAN - Stellantis expects more impact from US tariffs on vehicles and auto part imports in the second half of 2025, the company said on July 21 as it reported a preliminary €2.3 billion (S$3.5 billion) net loss for the first six months of the year.

The maker of Jeep, Ram, Peugeot and Fiat said US President Donald Trump’s tariffs had cost it €300 million so far as the company reduced vehicle shipments and cut some production to adjust manufacturing levels.

But chief financial officer Doug Ostermann told analysts that the €300 million impact was not representative of what the group expects for the second half, as tariffs came into effect only part-way through the first half.

“We’ll see significantly more in the second half unless things change... given the current outlook, I would expect to see that figure probably double in the second half or more,” he said, adding that Stellantis was seeing a total full-year impact of between €1 billion and €1.5 billion.

Stellantis, which under new chief executive Antonio Filosa faces the challenge of revamping its product ranges in Europe and the United States, said it also booked €3.3 billion in pre-tax charges for the first half.

These were due to programme cancellations, including a hydrogen fuel cell project and money set aside for fines linked to US pre-Trump carbon emissions regulation. It was also investing more in popular hybrid cars in Europe and large petrol-powered models in the US market.

In 2024, more than 40 per cent of the 1.2 million vehicles Stellantis sold in the US were imports, mostly from Mexico and Canada, where Mr Trump has imposed tariffs of 25 per cent.

Imports from the European Union face levies of 30 per cent,

though these have been deferred to Aug 1.

In April, it said it had reduced vehicle imports in response to tariffs and would calibrate “production and employment to reduce impacts on profitability”.

Rival Renault last week issued a profit warning on the back of softening demand for cars and vans in Europe.

Stellantis’ first-half loss, versus a €5.6 billion net profit a year earlier, underscores the tough challenges for Mr Filosa, who was appointed in May after a disastrous performance in the company’s crucial US market in 2024 forced the ousting of former boss Carlos Tavares.

In a letter to employees seen by Reuters, the new CEO on July 21 promised that 2025 would be “a year of gradual and sustainable improvement” after a “tough first half, with increasing external headwinds”.

Stellantis, which will publish its final results for the first half on July 29, said it burned through €2.3 billion of cash in the January-June period. REUTERS