Europe’s automotive giant Stellantis has warned of a massive net loss of €2.3 billion for the first half of 2025, as it faces rising costs and early impacts from U.S. tariffs on imported vehicles.
The company, which owns brands including Jeep, Dodge, Fiat, Chrysler, and Peugeot, expects first-half revenues to fall sharply to around €74.3 billion, down from €85 billion in the same period last year.
Stellantis had suspended its financial guidance in April amid economic and geopolitical uncertainties. To address the gap between analyst expectations and its actual performance, the firm has released preliminary unaudited figures, stating this was due to “the difference between analyst consensus forecasts and the firm’s performance over the period.”
The results increase pressure on new CEO Antonio Filosa, who took over in May after Carlos Tavares abruptly resigned amid declining profits, falling sales and challenges in the U.S. market.
On the Milan stock exchange, Stellantis shares slid over 2% before recovering slightly, but remain down nearly 40% year-to-date, reflecting investor concerns about the company’s recovery prospects.
Stellantis attributed its poor performance to four main factors: early efforts to improve profitability that resulted in roughly €3.3 billion in pre-tax net charges; higher industrial costs; unfavourable currency exchange rates; and the initial effects of U.S. tariffs.
The company expects tariffs to account for about €300 million of losses in the half-year results, with production cuts planned as part of its response. Full first-half results are due on July 29.
Vehicle shipments also fell because of these challenges. Stellantis estimates second-quarter deliveries declined 6% to approximately 1.4 million vehicles, with North American shipments down 25%, or about 109,000 units, mainly due to tariff-affected imports and lower fleet sales.
Industry analysts note that Stellantis’s struggles show the pressures faced by carmakers worldwide, including rising material costs, supply chain disruptions, and increased regulatory burdens.
Filosa’s leadership will be closely watched as the company seeks to stabilise operations and expand electric vehicle offerings in the thick of economic headwinds.