US tariffs, law pushes Jeep owner Stellantis to 2.3-bn-euro first half net loss

Jeep owner Stellantis said Monday that he felt the first impact of new US tariffs and suffered a major loss in the first half of the year, when he was hit with massive charges following changes to US law.

The net loss of 2.3 billion euros ($2.7 billion) in the first half came as North American sales continued to decline 25% year-on-year and 25% year-on-year.

According to preliminary results, the automakers, which also include Peugeot, Citroen and Fiat, said their net revenues for the first half fell 12.6% to €74.3 billion.

After a 9% decline in the first three months of 2025, vehicle sales fell 6% in the second quarter of the same period last year.

Stellantis said the “early impact of US tariffs” had a negative impact of 300 million euros, disrupting plans to respond to the struggling performance in North America.

Automakers are struggling to meet new US tariffs of 25% on imported cars that are rarely made in North America.

Stellantis fell into a net loss when it received a claim of 3.3 billion euros. This states that it is primarily related to program cancellation costs and platform failures.

President Donald Trump’s massive tax and spending law, approved earlier this month, removed the penalty of not respecting so-called cafe fuel economy targets. This means that automakers can produce and sell more contaminated vehicles in the US.

Stellantis suspended its financial guidance in April due to increased uncertainty caused by US tariffs.

The company said it is in the early stages of taking action to improve performance and profitability as new products are expected to have a greater impact in the second half of 2025.

Stellantis shares fell more than 2% as trading progressed on the Paris Stock Exchange.

Stellantis said it will release the results of the first half, which were audited as scheduled on July 29th.

©2025 AFP