Auto giant Stellantis is bracing for a €2.3 billion ($2.68 billion) net loss in the first half of 2025, a result of deepening financial strain from pre-tax net charges, higher costs, and the early impact of U.S. trade tariffs.
The preliminary and unaudited financial update, published Monday, offers a stark preview of what’s shaping up to be a challenging year for one of the world’s largest automakers.
Stellantis, which owns well-known brands including Jeep, Chrysler, Dodge, Fiat, and Peugeot, said its first-half net revenue fell to €74.3 billion from €85 billion a year earlier. The 12.6% decline reflects a cocktail of deteriorating fundamentals—tightening margins, lower shipments, and intensifying pressure in key markets, especially the United States.
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The company expects the U.S. tariffs alone to have cost it at least €300 million in the first half. Stellantis CFO Doug Ostermann warned that the full-year tariff hit could reach as high as €1.5 billion, with most of the pain concentrated in the latter half of the year.
Shipments in North America, Stellantis’ largest market by revenue, are expected to plunge by 25% in the second quarter—down 109,000 vehicles year-on-year—due to reduced manufacturing and curtailed imports of tariff-exposed vehicles. Globally, total second-quarter shipments declined an estimated 6% to 1.4 million units.
Stellantis said its performance was hindered by four primary factors: about €3.3 billion in pre-tax net charges, early restructuring efforts aimed at restoring profitability, foreign exchange losses, and the early fallout from new U.S. tariffs. The charges include write-downs, restructuring costs, and provisions related to regulatory requirements.
Deeper Trouble Ahead as Tariff Deadline Looms
While the €300 million tariff cost in H1 is already biting, the situation is poised to worsen unless the U.S. reaches new trade agreements with key partners before the Trump administration’s August 1 deadline. On July 12, President Donald Trump unveiled a sweeping plan to impose across-the-board tariffs on several of America’s top trading allies, including the European Union, Mexico, Brazil, Japan, and Canada.
Trump’s plan includes a 30% tariff on most EU and Mexican imports, with blanket tariffs between 20% and 50% for other nations. The administration also plans to slap a 50% tariff on imported copper—a key input for electric vehicles and modern manufacturing—potentially compounding Stellantis’ cost woes as it transitions further into EV production.
U.S. Commerce Secretary Howard Lutnick made it clear Monday that there will be no extensions: “Nothing stops countries from talking to us after August 1, but they’re going to start paying the tariffs on August 1,” he warned.
In a formal letter to European Commission President Ursula von der Leyen and other global leaders, Trump described America’s current trade deals as “deeply unfair,” accusing allies of exploiting U.S. openness while offering no reciprocal access in return.
The renewed tariffs reflect frustration in Washington over stalled negotiations and the flagging U.S. manufacturing sector, which has failed to recover momentum despite earlier trade policy recalibrations. Trump’s new approach signals a hard pivot back to protectionism, with potential ripple effects for automakers, steel producers, and electronics firms.
Mounting Pressure for Stellantis CEO
The early publication of these preliminary results—unusual for the company—comes amid concern over a widening gap between analyst forecasts and the company’s actual performance. Stellantis suspended its full-year guidance on April 30, making this release the first glimpse investors have had since the surprise resignation of former CEO Carlos Tavares in May.
Newly appointed CEO Antonio Filosa now faces the enormous task of steering the automaker through what is quickly becoming a perfect storm of rising costs, declining sales, and geopolitical headwinds. His leadership will be tested almost immediately as Stellantis prepares to report its full half-year financials on July 29.
Milan-listed shares of Stellantis dipped 1% on Monday, paring earlier losses. The stock is down roughly 38% year-to-date, and analysts say the July 29 earnings call may prompt a further selloff if the tariff exposure appears deeper than currently estimated.