Heavy losses tied to tariffs and restructuring plans
Stellantis estimates a net loss of 2.3 billion euros ($2.68 billion) for the first half of the year, largely due to U.S. tariffs and major financial charges. The automaker attributes approximately 300 million euros of that figure to net tariffs incurred, alongside production losses stemming from its ongoing response strategy.
Following earlier decisions to suspend guidance in April, Stellantis halted operations at facilities in Canada and Mexico and temporarily laid off 900 workers in Michigan and Indiana. These measures came after a 25% tax was imposed on imported vehicles by the Trump administration.
Billions in pretax charges deepen financial strain
Stellantis expects pretax net charges of around 3.3 billion euros ($3.84 billion). These include program cancellation costs, platform impairments, restructuring, and costs related to compliance with emissions standards. The automaker has been penalized under fuel economy regulations when fleet averages exceed set limits.
The group, which ranks as the world’s fourth-largest automaker, was formed through the 2021 merger between France’s PSA Peugeot and Fiat Chrysler. It is headquartered in the Netherlands. Antonio Filosa, who took over as CEO two months ago, is now tasked with navigating this turbulent financial phase after Carlos Tavares stepped down last year.
Industry-wide disruption as tariffs reshape the market
President Donald Trump’s tariffs have shaken the entire auto sector. Executive orders signed in April temporarily relaxed some restrictions, but the impact is already significant. Automakers report higher costs, disrupted supply chains, and declining competitiveness of U.S. production. The Center for Automotive Research projects that a uniform 25% tariff would add $107.7 billion in costs for all U.S. automakers, with $41.9 billion attributed to Detroit’s Big Three: Stellantis, General Motors, and Ford.
As vehicles and parts often cross U.S. borders multiple times during assembly, automakers are facing logistical and financial stress. Trump’s administration presents these policy moves as incentives for manufacturers to shift production back to U.S. soil, though results have been mixed.
Competitors brace for similar challenges
General Motors previously cut its profit outlook, citing an expected $4 billion to $5 billion hit from tariffs this year. GM now anticipates full-year adjusted earnings between $10 billion and $12.5 billion. Ford also warned of a $1.5 billion impact and withdrew its full-year guidance entirely.
Although Ford and Tesla assemble more vehicles within the U.S. and are somewhat shielded from broader tariff fallout, they are not immune. The full extent of financial disruption across the industry will likely become clearer as additional earnings reports are released in the coming weeks.
