Latest news with #Stellantis'
Business Insider
a day ago
- Automotive
- Business Insider
Auto Giant Stellantis (STLA) Warns of $2.7 Billion Loss Due to U.S. Tariffs
Automaker Stellantis (STLA) has warned that it expects to incur a net loss of 2.3 billion euros (US$2.68 billion) for the first half of this year due to the impact of U.S. tariffs. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. The Europe-based company behind vehicle brands such as Dodge, Jeep, Fiat and Chrysler also forecast first-half revenue of 74.3 billion euros, down from 85 billion euros a year ago. The preliminary figures replace Stellantis' financial guidance, which the company suspended on April 30, citing uncertainty caused by tariffs. The update reaffirms the challenges ahead for automakers in the wake of U.S. President Donald Trump's tariffs, and for new Stellantis CEO Antonio Filosa. The company said that its second-quarter vehicle shipments declined sharply due largely to the impacts of U.S. tariffs. North American Sales Specifically, Stellantis said its overall second-quarter shipments fell to an estimated 1.4 million vehicles, down 6% year-over-year. In North America, Stellantis said Q2 shipments are expected to decline by roughly 109,000 units, down an annualized 25%. On April 3 of this year, a 25% U.S. tariff took effect on all motor vehicles imported into America from foreign countries. Stellantis' financial results for the first half of the year will be released on July 29. STLA stock is down 21% so far in 2025. Is STLA Stock a Buy? The stock of Stellantis has a consensus Hold rating among 18 Wall Street analysts. That rating is based on four Buy, 12 Hold, and two Sell recommendations issued in the last three months. The average STLA price target of $10.99 implies 16.36% upside from current levels.
Miami Herald
a day ago
- Automotive
- Miami Herald
Stellantis expects first-half net loss of $2.7 billion as tariffs hit
Stellantis on Monday said it expects a net loss of 2.3 billion euros (approximately $2.7 billion at current exchange rates) in the first half of the year as it begins to feel the impact of U.S. tariffs while attempting to reorganize itself for greater long-term profitability. The report was unusual in that Stellantis released preliminary and unaudited financial information for the first half of the year, after suspending financial guidance for the full year April 30. The automaker said it took this action, considered extraordinary by financial experts, because of the divergence of analyst consensus forecast with its actual performance. Stellantis' reported net revenue of 74.3 billion euros ($86.9 billion) in the first half contrasts with 85 billion euros ($99.4 billion) and a 5.6 billion euro ($6.5 billion) net profit for the same period in 2024. It underscores the challenges still faced by new CEO Antonio Filosa, who was appointed in May after leading Stellantis' Jeep brand. Stellantis said four key factors impacted its financial performance in the first half of the year. One is the tariffs imposed by President Trump, which Stellantis estimates cost it 300 million euros ($351 million) due to lower shipments and production cuts. The automaker said its overall shipments fell to an estimated 1.4 million vehicles, down 6% from the same period in 2024. In North America, Stellantis reported that vehicle shipments declined 25% year-over-year due to reduced manufacturing and lower shipments of imported vehicles as the tariffs took hold. Last year, Stellantis imported over 40% of the 1.2 million vehicles it sold in the United States, mostly from Canada and Mexico, according to Automotive News. Stellantis also listed higher industrial costs, changes in foreign exchange rates, and roughly 3.3 billion euros ($3.8 billion) in pre-tax net costs associated with a product strategy shift that included canceling a hydrogen fuel-cell powertrain project and recommitting to hybrids in Europe and conventional internal-combustion powertrains in the U.S. Earlier this month, the automaker launched a hybrid version of the Fiat 500 in Europe, and it's announced the return of the Hemi V8 engine to the Ram 1500 pickup truck in the U.S. That's one of several moves by returned Ram boss Tim Kuniskis, along with a return to NASCAR racing and a possible passenger van, aimed at reviving the flagging brand. New CEO Filosa faces a similar task across the entire Stellantis constellation of brands. He replaces Carlos Tavares, who was ousted late last year amid poor financial performance. Stellantis' first-half 2025 net revenue was in fact up from the second half of 2024, but the results show the automaker still has a long way to go. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Los Angeles Times
a day ago
- Automotive
- Los Angeles Times
Stellantis takes $2.7 billion hit in market shaken by Trump
Stellantis NV's new Chief Executive Officer Antonio Filosa offered investors a first glimpse of his plan to overhaul the struggling automaker for a global car market that's being reshaped by President Donald Trump. The maker of Jeep SUVs and Fiat cars on Monday announced a surprise €2.3 billion ($2.7 billion) first-half net loss — analysts had expected a small profit — as the company tallies the costs of trade wars and scraps investments in electric and hydrogen vehicles to account for reduced demand. Trump has dialed back U.S. support for EVs since he returned to the White House. The 52-year-old Italian is trying to 'kitchen sink' the first-half results 'to provide a low earnings base upon which to build,' Bloomberg Intelligence analyst Michael Dean said in a note. The new CEO, in office for roughly a month, is responding to big changes in the auto market as well as the company's previous missteps. Trump's moves are raising costs and upending global supply chains, while Chinese manufacturers led by BYD Co. are pushing into Europe's stagnant car market. Stellantis' issues are gravest in the former profit center North America, where its shipments fell 25% in the second quarter after Filosa's predecessor Carlos Tavares angered dealers and unions with a series of painful cost cuts. Stellantis flagged some €3.3 billion in pretax net charges it incurred in the first half — including €700 million linked to its decision to pull out of a joint hydrogen-vehicle venture with Michelin and Forvia SE. The manufacturer is shifting investments from electric to hybrid vehicles and also incurred impairments on certain Maserati platforms during the first half. Additional charges were tied to the widening of a Takata airbag recall in Europe and a restructuring of its headcount in the region. The company also cited a roughly €300 million hit from U.S. tariffs as it lost production and responded to higher duties. The impact of duties will likely be 'significantly' bigger in the second half, Chief Financial Officer Doug Ostermann said on a call with analysts. Stellantis shares fell as much as 3.8% in Milan before erasing the losses and trading up 0.4% as of 4:04 p.m. local time. The stock is down around 37% this year. The company has been falling behind in the U.S. due to an aging lineup, model delays and pricing blunders. Filosa is now under pressure to overhaul the product offering in the country as local drivers gravitate toward hybrids. The Trump administration has made a series of moves that will hurt demand for battery-powered cars, such as eliminating penalties manufacturers faced for missing fuel-economy standards and phasing out federal tax credits of as much as $7,500 toward EV purchases. But reversing its fortunes there may take some time as Tavares' stringent cost cuts — like swapping metal parts for plastic ones on rugged vehicles — alienated longtime customers and hurt Stellantis' stable of brands that also include Ram, Dodge and Chrysler. Filosa, who lives in the U.S. and previously ran Jeep, also is contending with excess production capacity in Europe, where deliveries remain sluggish and some of its brands, notably luxury-car maker Maserati, are burning money. The company's global vehicle shipments fell 6% in the second quarter amid declines in North America and Europe. Still, the introduction of key new products in Europe - for example the Fiat Grande Panda and the Citroën C3 Aircross — went well and the current year is set to be one of 'gradual and sustainable improvement,' Filosa said in an internal message to employees obtained by Bloomberg on Monday. The company will reintroduce its financial guidance for the year when it releases more detailed first-half results on July 29, Ostermann said Monday. Stellantis said it disclosed the preliminary first-half figures to address differences between analyst forecasts and its performance in the period. It had pulled its guidance in April, citing U.S. tariff uncertainty. Any strategy changes got held up by Stellantis' months-long CEO search after Tavares left in December. Chairman John Elkann eventually settled on Naples-born Filosa, a seasoned company insider who joined Fiat in 1999 and later rose through the ranks as a protégé of the late Fiat Chrysler boss Sergio Marchionne. Torsoli writes for Bloomberg.
TimesLIVE
2 days ago
- Automotive
- TimesLIVE
Stellantis expects $2.7bn first-half loss as restructuring costs, US tariffs bite
Under Tavares, industry experts said Stellantis had priced itself out of the US market and failed to update popular models, leaving the company with vast numbers of unsold cars. Stellantis' North American sales fell 25% year-on-year in the second quarter, it said on Monday, showing the carmaker still has a long way to go. Stellantis also said it was seeing weak demand in Europe, especially for vans. The carmaker's shares fell 2.1% in morning trade, and are down 37% since the start of the year. Rival Renault's shares fell 18% last week when it issued a profit warning citing softening demand for cars and vans in Europe. Last year Stellantis imported more than 40% 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'. 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 performance. The group's first-half revenue totalled €74.3bn (R1.53-trillion), down from €85bn (R1.75-trillion) in the first half of 2024 but up from the second half of 2024 when revenue totalled €71.8bn (R1.48-trillion). '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 €2.3bn (R47.47bn) cash in the first half. Overall second quarter shipments fell by 6% compared with the same period last year, to an estimated 1.4-million vehicles, it said.
Morocco World
3 days ago
- Automotive
- Morocco World
Stellantis to Produce Fiat Giga Panda, Panda Fastback at Morocco's Kenitra Plant
Stellantis' Kenitra plant will produce two new Fiat models, including the Giga Panda and Panda Fastback, starting in 2026. Automotive-focused news outlet said that the company's strategy is clear, noting that the two models 'represent more than just a model.' 'Its official debut is expected in the coming months, with production set to begin in February 2026,' the report said, recalling Morocco's assets as a new industrial hub promising to 'reshape the game for the automotive group and, more broadly, the entire sector.' Earlier this week, Moroccan officials and Stellantis celebrated the expansion of the Stellantis plant in Kenitra. The €1.2 billion investment includes €702 million dedicated to developing local suppliers. With the expansion, the company aims to double its production capacity, raising the local integration rate to 75% by 2030. The expansion also aims to create 3,100 direct jobs, reinforcing Morocco's position as a key player in the automotive sector. Morocco's automotive production stands at 700,000 vehicles, and by the end of the year, the North African country is expected to produce one million vehicles. The approach also seeks to enhance electric vehicle production capacity by 53%. Morocco's goal is to increase the production of electric vehicles to 107,000 electric vehicles by the end of this year. The automotive sector is Morocco's first exporting industry, which created at least 116,000 jobs between 2014 and 2018. Morocco is also the first automotive manufacturer in Africa. Tags: Automotive Sectorfiat modelsMoroccoStellantis
