Jeep and Chrysler maker Stellantis says Trump tariffs cost company $350M in first half of 2025
The Dutch-based automaker — which has a portfolio that also includes Ram, Fiat and Peugeot — shipped about 109,000 fewer vehicles, a 25% drop, compared to the same period last year, the company said in releasing prelimnary data ahead of reporting earnings next week.
Last year, Stellantis imported over 40% of the 1.2 million vehicles it sold in the United States, mostly from Mexico and Canada. Since Trump rolled out his tariffs in April, which include a 25% levy on foreign cars, the company idled plants in Canada and Mexico.
3 Stellantis on Monday reported a $2.68 billion loss in the first half of this year.
REUTERS
Overall second-quarter shipments fell by 6% compared to the same period last year, to an estimated 1.4 million vehicles, it said.
The company reported preliminary losses of $2.7 billion on $83 billion in revenue for the first six months of the year, compared to a profit of $6.5 billion on nearly $100 million in revenue in the same period last year.
The bulk of the losses this year was driven by $3.8 billion in pre-tax net charges, including costs tied to restructuring and the cancellation of certain programs like a hydrogen fuel cell project, the company said.
Stellantis' results were 'worse than consensus, but we think poor numbers were anticipated,' Jefferies analyst Philippe Houchois wrote in a client note.
Bernstein analysts said that despite a 'big' earnings miss, restructuring steps taken by Stellantis 'suggest decisive actions.'
The losses underscore the tough challenges for new CEO Antonio Filosa, who was appointed in May after a disastrous performance in the company's crucial US market in 2024 forced the ouster of former boss Carlos Tavares.
3 Stellantis, whose portfolio includes Jeep, said net revenue fell to $86.5 billion — a 12.6% drop from the first six months of 2024.
REUTERS
Under Tavares, industry experts said Stellantis had priced itself out of the US market and failed to update popular models, leaving the company with vast numbers of unsold cars.
Globally, shipments totaled 1.4 million units for the quarter, down 6% year-over-year.
Filosa on Monday promised that 2025 would be 'a year of gradual and sustainable improvement' for the automaker after a 'tough first half, with increasing external headwinds.'
'Despite difficulties, it has also been six months of meaningful progress compared to the second half of 2024,' he said in a letter to employees seen by Reuters.
3 Stellantis' stock has fallen by more than 55% in the last 12 months.
The slowdown in deliveries contributed to the overall revenue decline and piled additional pressure on earnings.
Stellantis suspended its full-year guidance back in April.
Monday's preliminary results appear aimed at resetting expectations ahead of the company's full, audited financial report, which is scheduled for release on July 29.
In the meantime, the disappointing numbers have weighed on the company's stock price and investor confidence.
In the last 12 months, Stellantis' stock has dipped by more than 54%. It was trading 2.55% higher on Monday morning at around $9.44 per share.
With Post wires
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