Stellantis Reports €2.3 Billion Loss Amid U.S. Tariffs and Policy Shifts

Stellantis, the parent company of Jeep, Chrysler, Peugeot, and Fiat, reported a net loss of €2.3 billion ($2.7 billion) for the first half of 2025, citing early effects of new U.S. tariffs and a substantial one-time charge linked to changes in American legislation.

In unaudited preliminary figures released Monday, July 21, the automaker said its net revenue dropped 12.6% year-on-year to €74.3 billion. North American sales were particularly impacted, with a 25% year-on-year decline in the second quarter, following a 9% drop in the first. Overall vehicle sales were down 6% compared to the same period last year.

The company attributed a €300 million hit to the new 25% U.S. tariff, introduced under President Donald Trump, which targets vehicles not primarily built in North America. In response, Stellantis temporarily halted production at several facilities in Canada and Mexico as the tariffs took effect in April.

Stellantis also incurred a €3.3 billion charge due to program cancellations, platform write-downs, and the consequences of revised U.S. laws that eliminated penalties under the Corporate Average Fuel Economy (CAFE) standards. The legislative change eases fuel efficiency requirements for automakers.

The company said its North American sales slump stemmed from reduced production and shipping of imported models affected by tariffs, along with lower fleet sales. To counter the downturn, Stellantis plans to ramp up recovery initiatives, banking on upcoming product releases to improve results in the second half of 2025.

In April, Stellantis suspended its financial outlook due to increased market volatility. Analysts from ODDO BHF noted the sales drop was largely expected but highlighted that the 25% decline in North America far exceeded the projected 12%.

New CEO Antonio Filosa, who assumed the role in June after Carlos Tavares was removed, has already launched restructuring measures. Filosa, who previously headed the North American division, continues to oversee the region as part of his strategy to stabilize operations.

Stellantis shares dipped 2.1% in early Paris trading, while the broader market index fell 0.4%. The company is scheduled to release its audited half-year results on July 29.