Latest news with #DougOstermann
Auto Express
2 days ago
- Automotive
- Auto Express
This car giant is £260m down thanks to Trump and his tariffs
President Trump's tariffs are starting to bite across the car industry, if the latest news from the owner of Citroen, Peugeot, Vauxhall, Fiat and Jeep is anything to go by. The multi-brand Stellantis group says that it's in a 300m Euro (£260m) hole as a result of extra costs associated with importing cars to the US market. Advertisement - Article continues below The fall in revenue resulting from the tariffs contributed to a 2.3 billion Euro loss in the first half of 2025. But given that the measures were only imposed part of the way through that reporting period, worse could be still to come. "We'll see significantly more in the second half unless things change," said Doug Ostermann, Stellantis Chief Financial Officer. 'Given the current outlook, I would expect to see that figure probably double in the second half, or more.' Stellantis revealed that shipments to North America declined by 25 per cent in the three months to June compared with the same period last year. The likes of Peugeot, Citroen and Vauxhall don't have a presence in the US market, but Stellantis also owns Jeep, Chrysler, Dodge and Ram, as well as Alfa Romeo and Maserati, which do. US customers might end up paying more for cars but you don't have to. Check out the latest deals on the Auto Express Find a Car service. The giant Stellantis group does manufacture cars in the US but has a total of 52 plants in other countries around the world - including in Europe, Canada and South America - that import vehicles to the US market. The global nature of the car industry means that there will be other brands in a similar boat, both those importing completed vehicles and those sending components to feed US factories - although Trump did take measures to lower tariffs on these components in April. The UK arrived at a trade deal with the US government in May that lowered the 25 per cent tariffs on complete cars built here to 10 per cent, but this is still significantly higher than the previous tariff of 2.5 per cent. There could be further problems for Stellantis if President Trump follows through on his threat to impose 50 per cent tariffs on Brazil. The group has a major manufacturing operation there producing Fiat and Jeep cars. Come and join our WhatsApp channel for the latest car news and reviews...
The Sun
2 days ago
- Automotive
- The Sun
Huge carmaker behind Vauxhall and Peugeot is hit by £2billion loss as new boss throws ‘kitchen sink' at restructure
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. 3 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. 3 3
Time of India
2 days ago
- Automotive
- Time of India
Donald Trump tariff impact: Jeep parent company Stellantis sees $2.7 billion loss; revenue dips 12.6%
Stellantis, the parent company of Jeep, reported a substantial 2.3-billion-euro ($2.7-billion) net loss in the initial half of the year, affected by new US tariffs and significant charges due to US legislative changes. North American sales continued to decline, with a 25 percent volume reduction in the second quarter compared to the previous year, AP repoted. The automotive group, which includes brands such as Peugeot, Citroen and Fiat, recorded a 12.6 percent decrease in first-half net revenues to 74.3 billion euros, based on preliminary and unaudited results. Vehicle sales declined by six percent in the second quarter year-on-year, following a nine percent reduction in the first quarter of 2025. The company cited a 300-million-euro negative impact from "the early effects of US tariffs", which disrupted their North American recovery strategy, as per AP. Car manufacturers have found it challenging to adapt to the new 25 percent US tariff on imported vehicles not predominantly manufactured within North America. The organisation, which includes Chrysler, Dodge and Ram Truck brands, temporarily stopped production at certain Canadian and Mexican facilities in April when the tariffs became effective. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Could Be the Best Time to Trade Gold in 5 Years IC Markets Learn More Undo The company attributed the significant decline in North American sales volume to reduced production and delivery of imported vehicles affected by tariffs, alongside decreased corporate fleet sales. Stellantis recorded a 3.3-billion-euro charge, primarily related to programme cancellation costs, platform impairments, CAFE penalty rate legislation impact, and restructuring. Recent legislation approved by US President Donald Trump eliminated penalties for non-compliance with CAFE fuel economy targets, allowing manufacturers to produce more high-emission vehicles in the United States. The company indicated it had begun implementing measures to enhance performance and profitability, anticipating new products to have greater impact in the latter half of 2025. Stellantis shares experienced volatility on Monday, initially dropping over two percent before recovering to rise by more than two percent. Chief financial officer Doug Ostermann explained that approximately two billion euros of the charge related to eliminating unprofitable product programmes. These charges included European redundancy costs, abandonment of a 700-million-euro hydrogen fuel cell development programme, and European vehicle recalls due to defective Takata airbags. The company withdrew its financial guidance in April due to uncertainties created by US tariffs. Ostermann highlighted the current climate of economic and regulatory uncertainty. Financial analysts at ODDO BHF noted that sales decreases were anticipated, and new chief executives often implement provisions or restructuring charges upon assuming leadership. Antonio Filosa, appointed chief executive in June, promptly initiated management changes. He previously led and maintains responsibility for the North American region, which generates most company profits and whose difficulties led to Carlos Tavares's dismissal. While the overall six-percent sales volume reduction aligned with analyst expectations, the 25-percent decline was significantly higher than the predicted 12 percent. The company confirmed its audited first-half results would be released on July 29 as planned. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Global News
3 days ago
- Automotive
- Global News
Stellantis warns of more tariff impacts as it reports US$2.7B loss
Stellantis expects more impact from U.S. tariffs on vehicles and auto part imports in the second half of 2025, the company said on Monday as it reported a preliminary 2.3 billion euro (US$2.7 billion) net loss for the first six months of the year. The carmaker, which owns a sprawling portfolio of brands including Jeep, Ram, Peugeot and Fiat, said President Donald Trump's tariffs had cost it 300 million euros so far as the company reduced vehicle shipments and cut some production to adjust manufacturing levels. But Chief Financial Officer Doug Ostermann told analysts that the 300 million euro impact was not representative of what the group expects for the second half, as tariffs only came into effect part way through the first half. '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,' he said, adding that Stellantis was seeing a total full-year impact of between 1 and 1.5 billion euros. Story continues below advertisement 2:01 Some small auto businesses suffering under U.S. Tariff threats Stellantis, which under new CEO Antonio Filosa faces the challenge of revamping its product ranges in Europe and the United States, said it also booked 3.3 billion euros in pre-tax charges for the first half. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy These were due to program cancellations, including a hydrogen fuel cell project and money set aside for fines linked to U.S. pre-Trump carbon emission regulation. It was also investing more in popular hybrid cars in Europe and large gasoline-powered models in the U.S. market. Last year, more than 40 per cent of the 1.2 million vehicles Stellantis sold in the United States were imports, mostly from Mexico and Canada where Trump has imposed tariffs of 25 per cent. Imports from the EU face levies of 30 per cent, though these have been deferred to Aug. 1. Earnings miss 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.' Story continues below advertisement The automaker's first-half results were below consensus, according to analysts at Jefferies, Bernstein and Citi. But despite the earnings miss, restructuring steps taken by Stellantis 'suggest decisive actions,' Bernstein analysts said. Milan-listed shares in the automaker closed up 1.5 per cent after falling as much as 3.9 per cent in morning trade. They are down 35 per cent since the start of the year. In April, Stellantis suspended its profit forecasts for 2025 due to uncertainty about tariffs, but said on Monday it was publishing its unaudited preliminary financial data to align analyst forecasts with the group's actual performance. Asked whether Stellantis' situation was similar to that of rival Renault's, whose shares fell as much as 18 per cent last week when it issued a profit warning on the back of softening demand for cars and vans in Europe, Ostermann said Europe was a 'very competitive environment.' 8:50 Automotive parts manufacturers association doesn't want countertariffs 'I won't disagree with our counterparts at Renault,' he said. Story continues below advertisement Stellantis' first-half loss, versus a 5.6 billion euro net profit a year earlier, underscores the tough challenges for Filosa, who was appointed in May after a disastrous performance in the company's crucial U.S. market in 2024 forced the ousting of former boss Carlos Tavares. In a letter to employees seen by Reuters the new CEO on Monday promised that 2025 would be 'a year of gradual and sustainable improvement' after a 'tough first half, with increasing external headwinds.' Stellantis, which will publish its final results for the first half on July 29, said it burnt through 2.3 billion euros of cash in the January-June period. –Additional reporting by Enrico Sciacovelli; Writing by Giulio Piovaccari and Nick Carey; Editing by Louise Heavens and David Holmes
Reuters
3 days ago
- Automotive
- Reuters
Stellantis sees greater tariff impact after $2.7 bln first-half loss
MILAN, July 21 (Reuters) - Stellantis ( opens new tab expects more impact from U.S. tariffs on vehicles and auto part imports in the second half of 2025, the company said on Monday as it reported a preliminary 2.3 billion euro ($2.7 billion) net loss for the first six months of the year. The carmaker, which owns a sprawling portfolio of brands including Jeep, Ram, Peugeot and Fiat, said President Donald Trump's tariffs had cost it 300 million euros so far as the company reduced vehicle shipments and cut some production to adjust manufacturing levels. But Chief Financial Officer Doug Ostermann told analysts that the 300 million euro impact was not representative of what the group expects for the second half, as tariffs only came into effect part way through the first half. "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," he said, adding that Stellantis was seeing a total full-year impact of between 1 and 1.5 billion euros. Stellantis, which under new CEO Antonio Filosa faces the challenge of revamping its product ranges in Europe and the United States, said it also booked 3.3 billion euros in pre-tax charges for the first half. These were due to programme cancellations, including a hydrogen fuel cell project and money set aside for fines linked to U.S. pre-Trump carbon emission regulation. It was also investing more in popular hybrid cars in Europe and large gasoline-powered models in the U.S. market. Last year, more than 40% of the 1.2 million vehicles Stellantis sold in the United States were imports, mostly from Mexico and Canada where Trump has imposed tariffs of 25%. Imports from the EU face levies of 30%, though these have been deferred to August 1. 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". The automaker's first-half results were below consensus, according to analysts at Jefferies, Bernstein and Citi. But despite the earnings miss, restructuring steps taken by Stellantis "suggest decisive actions", Bernstein analysts said. Milan-listed shares in the automaker closed up 1.5% after falling as much as 3.9% in morning trade. They are down 35% since the start of the year. In April, Stellantis suspended its profit forecasts for 2025 due to uncertainty about tariffs, but said on Monday it was publishing its unaudited preliminary financial data to align analyst forecasts with the group's actual performance. Asked whether Stellantis' situation was similar to that of rival Renault's ( opens new tab, whose shares fell as much as 18% last week when it issued a profit warning on the back of softening demand for cars and vans in Europe, Ostermann said Europe was a "very competitive environment". "I won't disagree with our counterparts at Renault," he said. Stellantis' first-half loss, versus a 5.6 billion euro net profit a year earlier, underscores the tough challenges for Filosa, who was appointed in May after a disastrous performance in the company's crucial U.S. market in 2024 forced the ousting of former boss Carlos Tavares. In a letter to employees seen by Reuters the new CEO on Monday promised that 2025 would be "a year of gradual and sustainable improvement" after a "tough first half, with increasing external headwinds". Stellantis, which will publish its final results for the first half on July 29, said it burnt through 2.3 billion euros of cash in the January-June period. ($1 = 0.8595 euros)
