Stellantis warns of $1.7 billion US tariff impact in 2025
Forecasts for the second half were based on tariff rules effective Tuesday, and the overall 2025 tariff impact included 300 million euros incurred in the first half, the automaker said.
The 1.5-billion-euro ($1.73 billion) tariff impact was at the higher end of a forecast range of 1.0-1.5 billion euros the company provided last week when it released preliminary figures for the first half, which were broadly confirmed on Tuesday.
Stellantis' other challenges this year include foreign exchange fluctuations and increasing Chinese competition.
Shares were down 2.3%, the biggest decliner among blue chip stocks in Milan, after earlier sinking as much as 4.8%.
Analysts at Jefferies said in a note Stellantis' second-half guidance was vague, with scant details.
Stellantis also forecast higher net revenue and improved industrial free cash flow in the second half compared with the first, when it burned cash for 3 billion euros.
"Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to re-establish profitable growth and significantly improved results," new CEO Antonio Filosa said in a statement.
The company veteran was appointed in May after the ousting of former boss Carlos Tavares in December following a disastrous 2024 performance in the crucial U.S. market.
Filosa, reigning over a portfolio of 15 brands globally, will need to revamp product ranges and regain market share and investor confidence. He was set to make his first official appearance as CEO in a results call with analysts later in the day.
Stellantis in April withdrew its guidance for a moderate recovery this year after a profit drop in 2024, citing an evolving trade scenario and uncertain impact of U.S. tariffs.
On Sunday, the United States and the European Union struck a framework trade agreement, imposing a 15% U.S. import tariff on most EU goods - half the threatened rate - and averting a bigger trade war.
Stellantis, however, is mostly exposed to 25% tariffs U.S. President Donald Trump imposed on Mexico and Canada, on top of an existing 2.5% tariff, with more than 40% of the 1.2 million vehicles it sold last year in the U.S. being imports from these two countries.
For the first half, the maker of car brands including Jeep, Fiat, Peugeot and Ram posted a 13% drop in net revenue to 74.3 billion euros, an adjusted operating income margin of 0.7%, and a net loss of 2.3 billion euros.
Net revenue in North America, historically Stellantis' largest and most profitable market, was just over 28 billion euros in the first half and below Europe's 29.2 billion euros in the same period.
($1 = 0.8663 euros)
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How Hungarian Grand Prix practice unfolded
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Times
an hour ago
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