Latest news with #Filosa
NBC News
8 hours ago
- Automotive
- NBC News
Stellantis reinstates guidance but flags 'tough decisions' after $1.7 billion tariff impact
Auto giant Stellantis on Tuesday reinstated its financial guidance and touted a gradual recovery over the coming months. Stellantis, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, reported a first-half net loss of 2.3 billion euros ($2.65 billion), compared to a net profit of 5.6 billion euros over the same period in 2024. The multinational conglomerate had flagged the first-half loss in a surprise trading update last week, saying at the time that the move was necessary due to the difference between consensus forecasts and the firm's performance. Stellantis updated its full-year tariff impact to roughly 1.5 billion euros, of which 300 million euros was incurred during the first half of 2025. New CEO Antonio Filosa, who officially took the top job last month, said in a call with analysts Tuesday that the automaker has been working with President Donald Trump's administration since the tariffs were implemented. He said he wants the administration 'to properly recognize the high American U.S. content in some vehicles' when it comes to duties. He also said the company still has work to do in its key North American segment, which has been dealing with inventory issues and fractured relationships with employees and dealers. 'My first weeks as CEO have reconfirmed my strong conviction that we will fix what's wrong in Stellantis by capitalizing on everything that's right in Stellantis — starting from the strength, energy and ideas of our people, combined with the great new products we are now bringing to market,' Filosa said in a statement earlier Tuesday. '2025 is turning out to be a tough year, but also one of gradual improvement,' Filosa said. '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,' he added. Looking ahead, the company re-established financial guidance for the second half. It expects to see increased net revenues, low-single-digit adjusted operating income profitability and improved industrial free cash flow over the coming months. The automaker had suspended its guidance in April, citing uncertainties with tariffs. Stellantis' updated financial guidance was based on an assumption that current tariff and trade rules will remain in place. It comes shortly after the U.S. and European agreed to a trade framework that means U.S. President Donald Trump's administration will impose a blanket tariff of 15% on most EU goods. The deal represents a significant reduction from Trump's threat to impose charges of 30% from Aug. 1 and almost halves the existing tariff rate on Europe's auto sector from 27.5%. Automotive industry groups welcomed the breakthrough, particularly as it appears to avert a painful transatlantic trade war, but they also expressed deep concern about the costs associated with the new tariff reality. Imports from Canada and Mexico are currently taxed at 25%, but Trump has threatened to hike duties on Mexico to 30% and Canada to 35% starting Aug 1. Stellantis posted first-half net revenues of 74.3 billion euros, reflecting a 13% year-on-year drop, primarily driven by annual declines in North America, among other regions. Filosa said the company would be bringing back popular nameplates that had been discontinued in the U.S. and launching new products in the coming months. He added that Stellantis would provide an updated business plan at its capital markets day early next year. Milan-listed shares of Stellantis traded as much as 4.5% lower during morning deals before paring losses.
Iraqi News
17 hours ago
- Automotive
- Iraqi News
Jeep owner Stellantis says has turned corner
Paris – Jeep owner Stellantis said Tuesday it sees sales revenue and profitability rebounding in the second half of the year despite taking a 1.5-billion-euro ($1.7-billion) hit from US tariffs. The 15-brand group that also includes Peugeot, Citroen and Fiat, confirmed the preliminary announcement it made last week of a 2.3-billion-euro net loss in the first half of the year, as sales in North America continued to slump on an annual comparison. But Stellantis's new chief executive, Antonio Filosa, said the automaker is beginning to see 'gradual improvement' in sales volumes and revenues on a sequential basis 'despite intensifying external headwinds'. Like some of its rivals, Stellantis had suspended financial guidance due to the uncertainty surrounding US tariffs and regulatory changes, but it said it now sees an increase in revenues in the second half of the year as well as operating profit margin in the low single digits. Under former chief executive Carlos Tavares the company had long targeted a double-digit margin, but it fell to just 0.7 percent. Stellantis also put a figure on the impact of the 25 percent US tariffs on auto imports: 1.5 billion euros for 2025 overall, of which 300 million euros was incurred in the first half of the year. Part of the turnaround was taking a 3.3-billion-euro charge, which Stellantis announced last week, which took into account the costs to adapting to new US regulations. Trump's massive tax and spending legislation, approved earlier this month, removed the penalties for not respecting the so-called CAFE fuel economy targets, meaning automakers can produce and sell more higher polluting cars in the United States. This is allowing Stellantis to bring back a number of models, including pickup trucks and muscle cars, that had been phased out because of their internal combustion engines to meet fuel efficiency targets and pollution limits. Stellantis said this and a 'product wave' of 10 new models this year would support future performance. Company veteran Filosa took over as chief executive in June, half a year after Tavares left, in large part to haemorrhaging sales in North America. Filosa has shook up the company's management team and moved swiftly to jettison two billion euros of programmes considered as having poor prospects to quickly turn a profit, such as hydrogen fuel cell vehicles. Stellantis shares slumped 3.7 percent in trading on the Paris stock exchange, which was up 0.5 percent overall. Stellantis shares have lost around 37 percent since the start of the year and 70 percent from their peak early last year.
eNCA
18 hours ago
- Automotive
- eNCA
Jeep owner Stellantis says has turned corner
PARIS - Jeep owner Stellantis said it sees sales revenue and profitability rebounding in the second half of the year despite taking a 1.5-billion-euro ($1.7-billion) hit from US tariffs. The 15-brand group that also includes Peugeot, Citroen and Fiat, confirmed the preliminary announcement it made last week of a 2.3-billion-euro net loss in the first half of the year, as sales in North America continued to slump on an annual comparison. But Stellantis's new chief executive, Antonio Filosa, said the automaker is beginning to see "gradual improvement" in sales volumes and revenues on a sequential basis "despite intensifying external headwinds". Like some of its rivals, Stellantis had suspended financial guidance due to the uncertainty surrounding US tariffs and regulatory changes, but it said it now sees an increase in revenues in the second half of the year as well as operating profit margin in the low single digits. Under former chief executive Carlos Tavares the company had long targeted a double-digit margin, but it fell to just 0.7 percent. Stellantis also put a figure on the impact of the 25 percent US tariffs on auto imports: 1.5 billion euros for 2025 overall, of which 300 million euros was incurred in the first half of the year. Part of the turnaround was taking a 3.3-billion-euro charge, which Stellantis announced last week, which took into account the costs to adapting to new US regulations. Trump's massive tax and spending legislation, approved earlier this month, removed the penalties for not respecting the so-called CAFE fuel economy targets, meaning automakers can produce and sell more higher polluting cars in the United States. This is allowing Stellantis to bring back a number of models, including pickup trucks and muscle cars, that had been phased out because of their internal combustion engines to meet fuel efficiency targets and pollution limits. Stellantis said this and a "product wave" of 10 new models this year would support future performance. Company veteran Filosa took over as chief executive in June, half a year after Tavares left, in large part to haemorrhaging sales in North America. Filosa has shook up the company's management team and moved swiftly to jettison two billion euros of programmes considered as having poor prospects to quickly turn a profit, such as hydrogen fuel cell vehicles. Stellantis shares slumped 3.7 percent in trading on the Paris stock exchange, which was up 0.5 percent overall. Stellantis shares have lost around 37 percent since the start of the year and 70 percent from their peak early last year.
Yahoo
19 hours ago
- Automotive
- Yahoo
Stellantis to absorb $1.7 billion in tariff costs in 2025
Big Three automaker Stellantis (STLA) updated its first half financials after releasing preliminary figures last week, noting that President Trump's tariffs will cost 1.5 billion euros ($1.73 billion) in 2025. Stellantis did however reinstate financial guidance for the year. Stellantis — which counts brands like Ram, Jeep, Fiat, and Alfa Romeo in its product portfolio — said it revenues in the first half of 2025 to come in at 74.3 billion euros ($86.13 billion), down 13% year over resulting in a net loss of 2.3 billion euros ($2.67 billion). Last year in the same period Stellantis reported 5.6 billion euros ($6.48 billion) in net profit. Stellantis said adjusted operating income (AOI) came in at 500 million euros ($579.6 million), with cash flows from operating activities slipping to a loss of 2.3 billion euros ($2.67 billion). With that said, Stellantis now projects new guidance for the second half of the year and expects to see increased net revenues, low-single digit AOI profitability, and improved industrial free cash flow results. Stellantis said this assumes current tariff and trade rules in place as of July 29, 2025. Stellantis stock was down 4% in the pre-market. "2025 is turning out to be a tough year, but also one of gradual improvement. Signs of progress are evident when comparing H1 2025 to H2 2024, in the form of improved volumes, net revenues, and AOI, despite intensifying external headwinds," new CEO Antonio Filosa said in a statement. Stellantis said last week that it absorbed approximately 300 million euros ($347.77 million) in tariff-related costs as well as loss of planned production in the first half of the year. Two months ago, Stellantis selected Filosa, a 25-year veteran of the company and Americas COO, as its new chief executive. His tenure began on June 23, with interim CEO John Elkann remaining as executive chair. Filosa has his hands full repairing the Stellantis business. For the second quarter, Stellantis said global deliveries fell to 1.447 million units from 1.537 million a year ago, down 6%. Sales tumbled in the US 25%, while the greater European region saw sales drop 6%. Stellantis has been trying to pare bloated inventories in the US with pricing incentives and production cuts, and those measures have helped. But the big question remains, at least in the US, of the effect of auto sector tariffs targeting Canada and Mexico production. Stellantis makes several vehicles in Canada and Mexico, where 25% sector tariffs apply to all imports, in addition to auto parts tariffs. Last quarter, Stellantis idled production at plants in Canada and Mexico as a result of tariffs. Read more: 5 ways to tariff-proof your finances A just-announced US-EU tariff deal could help Stellantis, but issues including unpopular vehicles and existing tariffs for Canadian and Mexican imports will still be a problem. Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
Int'l Business Times
a day ago
- Automotive
- Int'l Business Times
Jeep Owner Stellantis Says Has Turned Corner
Jeep owner Stellantis said Tuesday it sees sales revenue and profitability rebounding in the second half of the year despite taking a 1.5-billion-euro ($1.7-billion) hit from US tariffs. The 15-brand group that also includes Peugeot, Citroen and Fiat, confirmed the preliminary announcement it made last week of a 2.3-billion-euro net loss in the first half of the year, as sales in North America continued to slump on an annual comparison. But Stellantis's new chief executive, Antonio Filosa, said the automaker is beginning to see "gradual improvement" in sales volumes and revenues on a sequential basis "despite intensifying external headwinds". Like some of its rivals, Stellantis had suspended financial guidance due to the uncertainty surrounding US tariffs and regulatory changes, but it said it now sees an increase in revenues in the second half of the year as well as operating profit margin in the low single digits. Under former chief executive Carlos Tavares the company had long targeted a double-digit margin, but it fell to just 0.7 percent. Stellantis also put a figure on the impact of the 25 percent US tariffs on auto imports: 1.5 billion euros for 2025 overall, of which 300 million euros was incurred in the first half of the year. Part of the turnaround was taking a 3.3-billion-euro charge, which Stellantis announced last week, which took into account the costs to adapting to new US regulations. Trump's massive tax and spending legislation, approved earlier this month, removed the penalties for not respecting the so-called CAFE fuel economy targets, meaning automakers can produce and sell more higher polluting cars in the United States. This is allowing Stellantis to bring back a number of models, including pickup trucks and muscle cars, that had been phased out because of their internal combustion engines to meet fuel efficiency targets and pollution limits. Stellantis said this and a "product wave" of 10 new models this year would support future performance. Company veteran Filosa took over as chief executive in June, half a year after Tavares left, in large part to haemorrhaging sales in North America. Filosa has shook up the company's management team and moved swiftly to jettison two billion euros of programmes considered as having poor prospects to quickly turn a profit, such as hydrogen fuel cell vehicles. Stellantis shares slumped 3.7 percent in trading on the Paris stock exchange, which was up 0.5 percent overall. Stellantis shares have lost around 37 percent since the start of the year and 70 percent from their peak early last year.
