Stellantis reported a €2.3 billion ($2.7 billion) net loss for the first half of 2025, marking a dramatic reversal from its €5.6 billion profit a year earlier, as U.S. tariffs, restructuring costs, and sluggish demand in core markets continue to batter the automaker's financial performance.
The maker of Jeep, Fiat, Chrysler, and Peugeot brands disclosed €3.3 billion in pre-tax charges, driven by program cancellations-including a hydrogen fuel cell initiative-legacy emission-related fines in the U.S., and increased investments in hybrid vehicles for Europe and large combustion-engine models in North America. The automaker also acknowledged a €300 million hit from newly imposed U.S. auto tariffs in the first half alone.
"Despite difficulties, it has also been six months of meaningful progress compared to the second half of 2024," Stellantis CEO Antonio Filosa said in a letter to employees. Filosa, who took the helm in May after Carlos Tavares stepped down amid mounting pressure, added that 2025 would be "a year of gradual and sustainable improvement."
Revenue for the first half fell to €74.3 billion, down from €85 billion in the same period last year. The company burned through €2.3 billion in cash between January and June and suspended full-year forecasts back in April due to the uncertainty surrounding tariffs.
Second-quarter global vehicle shipments fell 6% year-over-year to 1.4 million units, with North American volumes plunging 25% due to reduced imports and manufacturing adjustments. Stellantis imported over 40% of the 1.2 million vehicles it sold in the U.S. in 2024, primarily from Canada and Mexico-regions now impacted by new U.S. trade measures.
Chief Financial Officer Doug Ostermann said Monday that the full-year tariff impact could range between €1 billion and €1.5 billion, as reported by Reuters. He added that planned production cuts are being implemented to minimize profitability loss in the second half.
Industry analysts remained split. "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. Jefferies' Philippe Houchois wrote that while the numbers were "worse than consensus," the weak result had largely been anticipated.
Shares in Stellantis, listed in Milan, fell as much as 3.9% in early trading before paring losses to close down 0.8%. The stock is down 37% year-to-date. The broader sector has also struggled, with shares in rival Renault dropping 18% last week after the company issued a profit warning tied to softening European demand.
Earlier this month, Stellantis introduced a €17,000 hybrid Fiat 500 as part of its push to reignite Italian production and broaden its European hybrid offering. Still, challenges remain. The company noted weak van sales in Europe and continued pressure from higher industrial costs and currency headwinds.
