22-07-2025
Stellantis warns of $2.68B loss in first half of 2025
A classic Detroit brand is going to make some big changes across America. Stellantis — the company running iconic American car brands Chrysler, Jeep, Dodge, and Ram — shocked investors, admitting it lost $2.68 billion in the first half of 2025. That extends a streak of sales bungles. Last year, the company reported a 70 percent plummet in profits.
Now, experts tell that consumers should expect to see a lineup of rumbling gas-burners at US dealerships to boost those sales. 'Brand portfolio decisions made under the prior leadership missed the core needs of existing Ram, Dodge, and Jeep customers,' Rella Suskin, an analyst at MorningStar, said.
'This has left wide gaps in these brands' offering relative to where the market demand lies.' The first gas-powered shoe to drop was Ram's decision to revive the Hemi V8 version of its full-size pickup truck.
Last year, the truckmaker killed the grumbly 5.7-liter engine for a more efficient, higher-powered V6 engine. But customers balked at the decision to kill the gas-guzzler, forcing the truck's top boss to apologize in a new ad campaign. 'We own it. We got it wrong. And we're fixing it,' Tim Kuniskis, the CEO of the Ram brand, said in its latest commercial, speaking over the thunderous growl of the truck's iconic V8 cylinders.
'You hear that? That's our HEMI. And it's saying, "We're back."' Suskin said the shift back to rumbling tailpipes will extend to other brands, too. She pointed out that Jeep is bringing back the mid-sized Jeep Cherokee this year, plugging the company back into the best-selling segment in American carmaking.
'For Dodge, the company had focused on a new electric version model; however, this does not speak to the core customer,' she added. 'Stellantis will look to bring back a car to appease the core customer.' The about-face comes as Stellantis faces a financial crisis that's forcing the dramatic strategy shift.
The company's staggering billion-dollar first-half loss was revealed ahead of a scheduled July 29 earnings release. The financial meltdown isn't surprising. Former CEO Carlos Tavares abruptly quit in December with two years left on his contract, leaving replacement Antonio Filosa a gargantuan clean-up task.
Meanwhile, Trump's tariffs are hammering the company hard. Stellantis has already paid $350 million in tariffs this year and expects the bill to hit $1.5 billion by December. US shipments have cratered 25 percent. But here's the kicker for car buyers: prices at dealerships are expected to jump this year, Suskin said.
Dodge currently has 118 days worth of unsold cars sitting on lots — way above the industry average of 82 days. That massive inventory glut, combined with pre-tariff vehicles still being sold off, has kept prices artificially low.
