Stellantis expects US$2.7 billion first half loss as restructuring costs, US tariffs hit
The owner of brands including Fiat, Peugeot, Chrysler and Jeep said its initial estimate was that tariffs imposed by US President Donald Trump on US imports would have cost it 300 million euros, due to lower shipments and production cuts as the company adjusted manufacturing levels to the trade duties.
North America shipments, or deliveries of cars to dealers, distributors or retail and fleet customers, declined by 25 per cent year on year in the second quarter, it said.
Stellantis' preliminary first half results, which compared with a 5.6 billion euro net profit a year earlier, underscore the carmaker's ongoing struggle and the challenge for new CEO Antonio Filosa, who was appointed in May after poor results in 2024 led to the ousting of former boss Carlos Tavares.
The carmaker's shares fell 2 per cent in early trade, underperforming a 0.6 per cent drop in Milan's broader market. They are now down 37 per cent since the start of the year.
Last year, Stellantis imported over 40 per cent of the 1.2 million vehicles it sold in the US, mostly from Mexico and Canada. In April this year, the company said it had reduced vehicle imports in response to tariffs and would calibrate 'production and employment to reduce impacts on profitability'.
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Stellantis said on Monday it booked 3.3 billion euros in pre-tax net charges for the first half due to programme cancellation costs, including one for hydrogen propulsion development which it recently decided to discontinue, as well as changes to its manufacturing platforms as it makes changes to target demand for hybrid vehicles.
It also mentioned the net impact of alignment on the emissions regulations in the US where authorities in June published the final ruling on the Corporate Average Fuel Economy (CAFE) standards, which regulate how far vehicles must travel on a gallon of fuel.
The carmaker, which earlier this year suspended its forecasts for 2025 results, said it had taken the unprecedented decision to publish unaudited preliminary financial data to bring analyst consensus forecasts more in line with the group's actual performance, in the absence of an official guidance.
Its first-half revenue totalled 74.3 billion euros, versus 85 billion euros in the first half of 2024, but marking an improvement from the second half of last year when revenue totalled 71.8 billion euros.
'Results reflect the early stages of actions being taken to improve performance and profitability, with new products expected to deliver larger benefits in the second half of 2025,' JPMorgan analysts said in a note.
Stellantis said it burnt through 2.3 billion euros of cash in the first half.
Overall second-quarter shipments fell by 6 per cent compared to a year earlier, to an estimated 1.4 million vehicles, it said. REUTERS
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