Stellantis forecasts €2.3B loss in first half amid US tariffs, higher costs

ISTANBUL

Dutch-based automaker Stellantis said Monday it expects to post a net loss of €2.3 billion ($2.68 billion) for the first half of the year, blaming hefty pre-tax charges and the early impact of US tariffs.

In its preliminary financial results, Stellantis -- which owns Jeep, Dodge, Fiat, Chrysler and Peugeot -- estimated first-half revenue at €74.3 billion, down from €85 billion in the same period last year.

The company cited four main factors behind the results: initial steps to improve profitability, nearly €3.3 billion in pre-tax net charges, higher manufacturing costs and foreign exchange fluctuations, and the early effects of US tariffs imposed this year.

Stellantis estimated that net tariffs shaved €300 million off its earnings and anticipated planned production losses as part of its response strategy.

The company’s global shipments in the second quarter fell 6% year-on-year to about 1.4 million vehicles.

In North America, second-quarter shipments dropped by around 109,000 units -- a 25% annual decline -- driven by reduced manufacturing and shipments of imported vehicles most affected by tariffs, and lower fleet sales.

In Europe, shipments for the first half fell by 50,000 units, or 6%, primarily due to “product transition factors,” the company said.

The US imposed a 25% tariff on all automobile imports in April, adding uncertainty and pressure on global automakers operating in the American market.