Stellantis said Tuesday it expects U.S. tariffs to cost the company 1.5 billion euros ($1.7 billion) this year, five times the impact it suffered in the first half, when the automaker reported losses of 2.3 billion euros.
The maker of Jeep, Chrysler, Fiat and Peugeot cars still said it forecasts higher net revenue and a low-single-digit operating income margin in the second half despite increasing headwinds.
The Franco-Italian group said its net profits plummeted from 5.6 billion euros in the same period last year, as it burned 3.3 billion euros in cash due to the cancellation of a hydrogen fuel cell project, changes in the fine regime for U.S. carbon emission regulations, and write-downs on platform investments.
U.S. President Donald Trump's tariffs cost the company 300 million euros in the first six months of the year, Stellantis said. During the period, U.S. shipments were down by nearly a quarter as the carmaker reduced the importation of vehicles produced abroad.
Stellantis said it expected net revenues to increase over the next six months compared with the first half, when they dropped 13% to 74.3 billion euros. The carmaker also said cash flow would improve.
'Fix what's wrong'
Incoming CEO Antonio Filosa, who was confirmed in the role last month, said the new executive team "will continue to make the tough decisions needed to re-establish profitable growth and significantly improve results."
"My first weeks as CEO have reconfirmed my strong conviction that we will fix what's wrong with Stellantis," Filosa said in a statement.
The Italian manager, a company veteran, was appointed in May after a disastrous performance in the crucial U.S. market in 2024 forced the ousting in December of former boss Carlos Tavares.
Stellantis in April withdrew its guidance for a moderate recovery this year after a profit drop in 2024, citing an evolving trade scenario and uncertain impact of U.S. tariffs.
Filosa, who faces the challenge of revamping product ranges and regaining market share and investors' confidence, was set to make his first official appearance as CEO in a results call with analysts later in the day.
North American revenues fall
On Sunday, the United States and the European Union struck a framework trade agreement, imposing a 15% U.S. import tariff on most EU goods – half the threatened rate – and averting a bigger trade war.
Stellantis, however, is exposed to 25% U.S. tariffs on Mexico and Canada. Last year, more than 40% of the 1.2 million vehicles Stellantis sold in the United States were imports, mostly from the two neighboring countries.
Efforts to cut excess inventories in the U.S. brought net revenues in North America, historically Stellantis' largest and most profitable market, to just over 28 billion euros in the first half, below over 29.2 billion euros in Europe in the same period.