Stellantis reports $2.7 billion losses linked to tariffs

Sales in North America plummeted by 25% in the second quarter, Stellantis said.

Stellantis projects $2.7 billion losses due to tariffs

Stellantis, the maker of Jeep, has reported a significant decline in sales due to tariffs imposed by the Trump administration. In the second quarter, sales in North America dropped by 25% compared to the same period last year. The company anticipates a loss of $2.7 billion for the first half of 2025, influenced by approximately $350 million in direct tariff costs and reduced production responses. Tariffs of 25% on imported vehicles took effect on April 2, impacting Stellantis’s operations in the U.S., Canada, and Mexico. As a result, Stellantis temporarily halted production at two plants and laid off 900 employees. This situation puts a spotlight on the challenges facing the automotive industry amid current trade policies and highlights ongoing risks related to global supply chains and compliance costs.

Stellantis's forecasted losses reflect broader challenges in the automotive sector. CEO Antonio Filosa's recent motto, emphasizing excellence, contrasts with the reality of increasing operational costs due to tariffs. The ongoing trade policies not only impact Stellantis but pose a threat to the entire U.S. automotive supply chain. With a significant reliance on imports, car manufacturers face pressure to adapt quickly or risk further financial loss. This situation lays bare the tensions between governmental trade directives and commercial viability, suggesting that a recalibration of these policies may be necessary for industry recovery.

Highlights

The impact of tariffs on Stellantis raises questions about the future of the automotive sector under ongoing trade policies.