Stellantis projects $1.7 billion loss from U.S. tariffs

Stellantis projects a significant financial impact from U.S. tariffs this year.

Stellantis reports $1.7 billion loss from US tariffs this year

Stellantis has announced that it expects to incur a loss of 1.5 billion euros, equivalent to $1.7 billion, due to U.S. tariffs this year. This projected cost is dramatic, exceeding the 300 million euros lost in the first half of the year. The company's overall net profits fell from 5.6 billion euros ($6.5 billion) in the previous year, significantly affected by a cash burn of 3.3 billion euros ($3.8 billion) linked to canceled projects and emissions regulations. While the company anticipates an increase in net revenues in the second half of the year, Stellantis acknowledges the challenge of decreasing shipments and tariffs' financial toll.

The stark financial forecast from Stellantis highlights a profound strain from external pressures, particularly U.S. tariffs stemming from trade policies. As the carmaker grapples with these rising costs, the impact on profitability and long-term growth cannot be understated. This situation raises concerns regarding how effectively Stellantis can adapt and navigate the evolving automotive landscape, especially under the leadership of new CEO Antonio Filosa. The urgency for decisive actions to stem ongoing losses will likely play a pivotal role in the company's future stability.

Highlights

The road ahead for Stellantis is uncertain, marked by the need for strategic changes.