Huge carmaker behind Vauxhall and Peugeot is hit by £2billion loss as new boss throws ‘kitchen sink' at restructure

Scottish Sun

8 hours ago

The manufacturing giant has blamed huge losses on Trump's brutal tariffs
TURNING AROUND Huge carmaker behind Vauxhall and Peugeot is hit by £2billion loss as new boss throws 'kitchen sink' at restructure
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A MAJOR car firm behind 14 brands including Vauxhall and Fiat has reported a loss of more than £2 billion so far this year.
Stellantis boss Antonio Filosa has vowed to 'throw the kitchen sink' at restructuring the manufacturing giant after a "tough" six months.
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CEO Antonio Filosa has vowed to 'throw the kitchen sink' at restructuring the car maker
Filosa - who joined the struggling car maker last month - pointed to the impact from Donald Trump's global tariffs and growing restructuring costs.
The company, which also owns Citroën and Peugeot, claimed the US President's extortionate levies had cost it more than £260million.
Stellantis halted production in North America in April, shortly after the tariffs were announced, leading to a six per cent decline in shipments across the globe.
Chief Financial Officer Doug Ostermann admitted that the figures could get worse, as the levy only came into effect part way through the first half of the financial year.
He told analysts: "We'll see significantly more in the second half unless things change.
"Given the current outlook, I would expect to see that figure probably double in the second half or more."
The car maker was forced to cancel a number of programmes this year, including a hydrogen fuel cell project.
This year's huge loss is a stark contrast to the first half of 2024, with Stellantis reporting a profit of more than £4.8billion.
Despite the financial difficulties, Mr Filosa hailed his company's "meaningful progress" in the first half of 2025.
In a letter to employees, he said it had been 'tough ... with increasing external headwinds including tariffs, foreign exchange effects and challenging macro-economic conditions".
He added: 'Despite difficulties, it has also been six months of meaningful progress compared to the second half of 2024."
It comes as the Franco-Italian automaker admitted it may have to shut some of its factories.
WHO ARE STELLANTIS?
They are one of a number of European car manufacturers that risk hefty EU fines for not complying with CO2 emission targets.
Stellantis' Europe chief Jean-Philippe Imparato slammed the targets, saying they were still unreachable, according to Automotive News.
Speaking at a conference in the lower house of parliament in Rome, he said that without significant changes in the regulatory situation by the end of this year, "we will have to make tough decisions."
Stellantis would therefore either have to double its electric vehicle sales or cut the production of petrol and diesel vehicles.
Imparato said: "I have two solutions: either I push like hell (on electric)... or I close down ICE (internal combustion engine vehicles).
"And therefore I close down factories."
Meanwhile, discussions over the future of Maserati remain ongoing, as Stellantis was reported to have hired management consulting firm McKinsey and Co to review the situation.
McKinsey was called in April this year to advise on struggling brands Maserati and Alfa Romeo, with both experiencing a dire 2024.
Last year, the number of Maserati units sold plunged from 26,600 to just 11,300.
Stellanis told Motor1: "McKinsey has been asked to provide its considerations regarding the recently announced U.S. tariffs for Alfa Romeo and Maserati."
Trump's new legislation means tariffs of at least 25 percent on anything imported into the US.
Maserati has no new model launches scheduled as it waits for a new business plan, with the last one having been put on hold by Stellantis in 2024.
But as things stand, it is understood that all options remain on the table for the world-renowned Italian brand.
Plans for the hotly anticipated electric MC20 Folgore were also binned due to low demand.
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Despite the financial difficulties, Mr Filosa hailed his company's 'meaningful progress' in the first half of 2025
Credit: Getty