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Stellantis, the parent company of Jeep, Peugeot, Fiat, and other major automotive brands, announced a substantial €2.3 billion ($2.7 billion) net loss in the first half of 2025.
The company attributed this downturn to the initial impact of new US tariffs and a large charge resulting from changes in US legislation.
The loss comes amidst a continued slump in North American sales, which saw a 25% decrease in volume during the second quarter compared to the previous year.
Overall net revenues for the first half dropped by 12.6% to €74.3 billion, according to preliminary, unaudited results. Vehicle sales experienced a 6% decline in the second quarter, following a 9% drop in the first three months of the year.
Impact of US Tariffs and Production Adjustments
Stellantis reported that the “early effects of US tariffs” had a negative impact of €300 million, disrupting its efforts to improve performance in North America.
Automakers have been grappling with US President Donald Trump’s new 25% tariff on imported cars not primarily manufactured within North America.
In April, Stellantis, which also owns the Chrysler, Dodge, and Ram Truck brands, paused production at some of its plants in Canada and Mexico as these tariffs took effect.
The company stated that the sharp decline in North American sales volume was “due to factors including the reduced manufacture and shipments of imported vehicles, most impacted by tariffs,” as well as lower sales to corporate fleets.
Restructuring Charges and Future Outlook
Stellantis also incurred a €3.3 billion charge, primarily related to “programme cancellation costs and platform impairments, the net impact of the recent legislation eliminating the CAFE penalty rate, and restructuring.”
This legislation, approved earlier this month, removed penalties for failing to meet CAFE fuel economy targets, allowing automakers to produce and sell more higher-polluting cars in the United States.
The company is in the early stages of implementing measures to improve performance and profitability, with new products expected to have a greater impact in the second half of 2025.
Stellantis Chief Financial Officer Doug Ostermann noted that approximately €2 billion of the charge was linked to discontinuing “product programmes where we really couldn’t see sufficient returns.” This includes the cost of European layoffs, the cancellation of a €700 million hydrogen fuel cell development program, and vehicle recalls due to faulty Takata airbags in Europe.
Stellantis had suspended its financial guidance in April due to the heightened uncertainty caused by US tariffs.
Ostermann acknowledged “a lot of uncertainty in the environment today—both economic uncertainty and a lot of regulatory uncertainty.”
Analysts at ODDO BHF commented that the drop in sales was anticipated and that new chief executives often “spring-clean” by implementing new provisions or restructuring charges.
Company veteran Antonio Filosa took over as CEO in June, immediately initiating a management shake-up. Filosa, who previously headed the North American region (accounting for most company profits), has retained responsibility for the region.
While the overall 6% drop in sales volume was in line with analyst expectations, the 25% drop in North America was double the 12% anticipated by analysts.
The company is scheduled to release its audited first-half results on July 29.
