Stellantis Anticipates USD2.68B Net Loss
(MENAFN) Dutch-headquartered automaker Stellantis announced Monday it anticipates a net loss of USD2.68 billion (€2.3 billion) for the first half of the year, attributing the shortfall to steep pre-tax charges and the initial blow from newly imposed U.S. tariffs.
In its preliminary earnings report, Stellantis — the parent company of Jeep, Dodge, Fiat, Chrysler, and Peugeot — projected revenue of USD79.6 billion (€74.3 billion) for the period, a significant drop from USD91.1 billion (€85 billion) recorded in the same timeframe last year.
The company outlined four primary contributors to the downturn: early-stage profitability improvement initiatives, approximately USD3.53 billion (€3.3 billion) in pre-tax net charges, escalating production expenses compounded by currency fluctuations, and the beginning effects of American tariffs introduced earlier this year.
Stellantis estimated that tariffs alone reduced its earnings by USD322 million (€300 million). The automaker also warned of additional, planned production cuts as part of its broader cost-management response.
Global vehicle shipments dipped 6% year-over-year in the second quarter, falling to roughly 1.4 million units.
In North America, the company reported a sharp 25% annual drop in second-quarter deliveries — down by about 109,000 units — citing scaled-back manufacturing, decreased imports of tariff-hit models, and a decline in fleet sales.
Meanwhile, European shipments in the first half declined by 50,000 units, or 6%, largely due to “product transition factors,” according to Stellantis.
The automotive industry continues to feel the strain after the United States enforced a 25% tariff on all imported vehicles in April, injecting fresh uncertainty into the American market and placing global manufacturers under added pressure.
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