Jeep parent company, Stellantis, reported a major loss on Monday for the first half of the year, citing the initial effects of new U.S. tariffs and a significant financial hit stemming from a change in US laws.
The 2.3-billion-euro ($2.7-billion) net loss in the first half of the year came as sales in North America continued to slump, down 25% by volume in the second quarter year-over-year.
The carmaker, whose stable of brands also includes Peugeot, Citroen and Fiat, said first-half net revenues dropped 12.6% to 74.3 billion euros, according to the preliminary and unaudited results.
Sales of vehicles fell by 6% in the second quarter year-over-year, after having dropped 9% in the first three months of 2025.
Stellantis said "the early effects of U.S. tariffs" had a 300-million-euro negative impact and disrupted its plans to boost its struggling performance in North America.
Automakers have struggled to respond to U.S. President Donald Trump's new tariff of 25% on imported cars that are not largely made within North America.
The company, which also owns the Chrysler, Dodge and Ram Truck brands, paused production at some plants in Canada and Mexico in April as the tariffs went into force.
Stellantis said the sharp drop in North American sales volume was "due to factors including the reduced manufacture and shipments of imported vehicles, most impacted by tariffs," as well as lower sales for corporate fleets.
Stellantis also took a 3.3-billion-euro charge, which it said was "primarily related to programme cancellation costs and platform impairments, net impact of the recent legislation eliminating the CAFE penalty rate and restructuring."
Trump's massive tax and spending legislation, approved earlier this month, removed the penalties for not respecting the so-called CAFE fuel economy targets, meaning automakers can produce and sell more higher-polluting cars in the United States.
The company said it was in the early stage of taking action to improve performance and profitability, with new products expected to deliver a larger impact in the second half of 2025.
Stellantis suspended its financial guidance in April due to the heightened uncertainty generated by U.S. tariffs.
Analysts at finance group ODDO BHF said a drop in sales was widely expected and noted that new chief executives often clean house by passing new provisions or restructuring charges.
Company veteran Antonio Filosa took over as chief executive in June and immediately launched a management shake-up.
Filosa headed up the North American region that accounts for most company profits and whose struggles last year precipitated the sacking of Carlos Tavares, and has retained responsibility for the region.
While the overall 6% drop in sales volumes was in line with analyst expectations, according to ODDO BHF, the 25% drop was double the 12% foreseen by analysts.
Shares in Stellantis fell 2.1% in morning trading on the Paris stock exchange, which was 0.4% lower overall.
Stellantis said it would release audited first half results on July 29 as scheduled.
