Tariffs cause €330m hit
Stellantis expects loss of €2.3bn due to tariffs and restructuring
Stellantis is expecting to take a hit of €2.3 billion ($2.7bn) in the first half of this year, due to costs associated with restructuring and expenses incurred from US tariffs.
In its preliminary and unaudited financials for the first half of 2025, the OEM said the net loss of €2.3bn is the result of the early effects of US tariffs, as well as programme cancellations, the early stage of actions being taken to improve performance and profitability, platform impairments, higher industrial costs and changes in foreign exchange rates.
The carmaker also preliminarily reported net revenues of €74.3bn, adjusted operating income of €540m and industrial free cash flow of €3bn outflow.
Doug Ostermann, chief financial officer at Stellantis, said on an investor call that tariffs had a net impact of approximately €330m in the first half of the year. “That’s really consistent with the disclosed estimate I made of a €1.15bn tariff impact, as we’ll see more impact in the second half of the year,” he said.
Ostermann said shipments were also impacted in the first half “due to some downtime [Stellantis] took in the initial period of the tariff announcements particularly in products produced in Europe, Canada and Mexico” while the carmaker waited for clarity on the tariffs.
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There was also a net expense of €300m associated with several items related to the reduction to zero of US CAFE rates as a result of the passing of the ‘One Big Beautiful Bill’.
Vehicle inventories at the end of H1 were unchanged since H2 of 2024, as OEM inventories rose by around 60,000 units while dealer inventories decreased by about 60,000 units.
“Our first half results are far below our potential, even when we take into account the strong industry headwinds that characterised the first half of the year, and this is because we still have a lot of work to do in terms of progressing our commercial recovery,” Ostermann said. “At the same time, directionally there was sequential improvement from the second half of 2024, as our volumes and revenues increased versus the second half of last year, adjusted operating income margin improved, and cash flow outflows were cut roughly in half.”
He added: “We have seen sequential progress, but certainly the management team is not happy with where we’re at, and we’re going to continue to progress in the second half of the year.”
Stellantis’ full first half results for 2025 are due to be released next week.
