Stellantis Expects €2.3 Billion Loss in H1 2025 Due to Restructuring Costs and Tariffs

On July 21, Stellantis announced that it expects to incur a loss of €2.3 billion (approximately $2.7 billion) in the first half of 2025, impacted by restructuring costs and initial effects from U.S. tariffs. The automaker, which owns brands such as Fiat, Peugeot, Chrysler, and Jeep, has preliminarily estimated a loss of €300 million due to tariffs imposed during the Trump administration on imported goods. This loss primarily arises from production scale adjustments to comply with new tariff policies, leading to reduced output and declining delivery volumes. In 2024, over 40% of the 1.2 million vehicles sold by Stellantis in the U.S. were imported, mostly from Mexico and Canada. In April 2025, the company reported a reduction in car imports to address U.S. tariff policies and planned to adjust production capacity and workforce to mitigate impacts on profitability. In Q2 2025, delivery volumes in North America dropped 25% year-on-year, while global deliveries were estimated at 1.4 million, down 6% compared to the previous year. For the first half of this year, Stellantis reported total revenues of €74.3 billion, a decrease from €85 billion in the first half of 2024, but an improvement compared to €71.8 billion in the second half of 2024. The group also disclosed a cash flow net consumption of €2.3 billion for H1 2025. As a result of this news, Stellantis's stock fell by 2% in early trading in Milan on July 21, underperforming the Milan market's decline of 0.6%. Since the beginning of 2025, its stock price has dropped by 37%. The preliminary results for the first half starkly contrast with a net profit of €5.6 billion in the same period in 2024, highlighting the challenges faced by the automaker and the new CEO, Antonio Filosa, who took office in May 2025 following the departure of his predecessor, Carlos Tavares, due to poor performance in 2024. Stellantis also noted that it recorded a pre-tax net expenditure of €3.3 billion during the first half, which includes costs related to project cancellations (including the recent decision to terminate hydrogen vehicle development projects) and expenses incurred from adjusting manufacturing platforms to meet hybrid vehicle demands. Additionally, the group referenced the net effects of compliance with U.S. emission regulations. In June, U.S. authorities released the final version of the Corporate Average Fuel Economy (CAFE) standards, which dictate the fuel efficiency requirements for vehicles. Stellantis explained that it is providing this preliminary unaudited financial data as an exception to narrow the gap between market analysts' expectations and the group's actual operational performance, having already paused full-year guidance at the beginning of 2025. A report by JPMorgan analysts stated, 'The financial data for the first half reflects the initial actions taken by Stellantis to improve performance and profitability, with expectations that new products will yield greater benefits in the second half of 2025.'