US tariff pushes Jeep owner Stellantis into big loss

Stellantis, the owner of Jeep, Chrysler, Peugeot, and Fiat, reported a significant setback on Monday, July 21, with a €2.3 billion ($2.7 billion) net loss in the first half of 2025. The loss reflects the early impact of new U.S. tariffs and a massive charge related to changes in American law.

The company revealed that its net revenues dropped 12.6 percent year-on-year to €74.3 billion in unaudited preliminary results. Sales volumes in North America fell sharply, with a 25 percent year-on-year decline in the second quarter, following a nine percent drop in the first quarter. Vehicle sales overall declined six percent in the second quarter compared to the same period last year.

Stellantis attributed a €300 million negative impact to the early effects of U.S. tariffs, which disrupted efforts to turn around its North American operations. The new 25 percent tariff, implemented by the administration of U.S. President Donald Trump, targets imported vehicles not primarily built in North America. In response, Stellantis paused production at select plants in Canada and Mexico as the tariffs took effect in April.

The carmaker also recorded a €3.3 billion charge, citing programme cancellations, platform impairments, and the net impact of new legislation eliminating penalties under the U.S. Corporate Average Fuel Economy (CAFE) standards. The recent U.S. tax and spending law removed fines for failing to meet fuel efficiency targets, effectively loosening environmental restrictions for automakers.

Stellantis acknowledged that the drop in North American sales was driven by reduced manufacturing and shipments of imported vehicles affected by tariffs, along with a decline in fleet sales. The company is initiating efforts to recover performance and profitability, with expectations that new product launches will have a more significant impact in the second half of the year.

In April, Stellantis suspended its financial guidance due to heightened market uncertainty. Analysts at ODDO BHF described the decline in sales as anticipated but noted the 25 percent drop in North American sales was more than double the 12 percent forecast by analysts.

Antonio Filosa, who took over as CEO in June following the ousting of Carlos Tavares, has already begun restructuring efforts. Filosa, a company veteran who previously led the North American region, has retained oversight of that division as part of his leadership strategy.

Stellantis shares dropped 2.1 percent in early trading on the Paris stock exchange, which was down 0.4 percent overall. The company is expected to publish its audited first-half results on July 29.