Stellantis reported a $2.65 billion net loss for the first half of the year and noted that Trump tariffs accounted for $324 million of that. The automaker warned that the tariff hit could rise to $1.4 billion during the second half of the year and said it will have to make “tough decisions” in the months ahead. More from Headlight.News.
New Stellantis CEO Antonio Filosa first came to the U.S. as head of the Jeep brand.
With the automaker taking a major financial hit for the first half of this year, Stellantis warned it faces “tough decisions” in the months ahead, a situation worsened by the rising cost of the Trump administration’s tariff regime.
Increased duties on everything from imported autos and auto parts to foreign steel and aluminum generated about $324 million in unexpected costs during the first half of the year, contributing to a net loss of $2.65 billion.
The automaker warned that tariff costs should more than quadruple during the second half of 2025, even with new trade agreements between the U.S. and the European Union.
What’s new
Stellantis has cut production and imports of European models, like this Fiat 500e, due to tariffs.
A year ago, Stellantis reported a 5.6 billion euro profit for the first half, the numbers this year plunging to 2.3 billion in the red.
The Amsterdam-based company – formed by the merger of Fiat Chrysler Automobiles and PSA Groupe – suffered a 13% year over year plunge in revenues – to 74.3 billion euros – reflecting declining sales in North America, Europe and other key markets. They were up solely in South America.
The downturn was particularly severe in North America where volumes were off 23%, Stellantis delivering just 647,000 vehicles.
Tariffs take a bite
Stellantis brought Tim Kuniskis out of retirement to help address its problems.
A variety of factors contributed to that downturn, including lower fleet sales and production gaps due to the discontinuation of old models like the gas-powered Dodge Charger and Challenger muscle cars. Stellantis only began to ramp up production of the new Charger Daytona during the first half of 2025.
Tariffs were particularly problematic, the automaker noted, even though they only covered part of the six-month period.
They added to the cost of even U.S.-made products relying on foreign parts and metals. But Stellantis also trimmed back production and imports of models made in Europe, impacting sales of such brands as Fiat, Alfa Romeo and Maserati, the company said.
More Stellantis News
- Antonio Filosa Named New Stellantis CEO
- Carlos Tavares’ Resignation Left Stellantis Rudderless
- Tariffs to Cost U.S. Automakers Billions
“Tough decisions”
After his appointment, Stellantis CEO Antonio Filosa (right) launched a worldwide tour of Stellantis facilities.
“My first weeks as CEO have reconfirmed my strong conviction that we will fix what’s wrong in Stellantis by capitalizing on everything that’s right in Stellantis – starting from the strength, energy and ideas of our people, combined with the great new products we are now bringing to market,” Antonio Filosa, the recently appointed Stellantis CEO, said in a statement outlining the situation at the automaker.
But Filosa didn’t sugarcoat the problems ahead, including the forecast that the hit from tariffs will rise to $1.4 billion between July and December.
“Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to re-establish profitable growth and significantly improved results,” Filosa added.
The automaker already began laying out new plans since Filosa was named head of operations in the Americas late last year. That has seen shifts in brand strategies and elimination of some weak models. It also killed off a hydrogen car program this month. And there is speculation it may terminate its ties to Archer Aviation, considered one of the leaders in the development of VTOL air taxis.
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