Stellantis Faces Major Losses and Challenges Ahead: CEO Promises Tough Decisions and Revival

Stellantis faces major losses and tough decisions ahead under new CEO Antonio Filosa. The automaker closed the first half of the year with a EUR2.3 billion loss, driven by an 8% drop in sales, particularly in the US. Challenges include a weak dollar, US tariffs, and new customs regulations, as well as struggling historic brands and excess production capacity in Europe. A new industrial plan is expected in 2026, when Filosa's "tough decisions" will be clear.

Stellantis N.V. reported its financial results for the first half of 2025, reflecting a challenging market environment and ongoing recovery efforts under new CEO Antonio Filosa. The company posted a net loss of €2.3 billion, a significant decline from the €5.6 billion profit recorded in the same period last year [1].

The primary driver of the loss was a 13% drop in net revenues to €74.3 billion, primarily due to year-over-year declines in North America and Enlarged Europe. These regions were particularly impacted by external headwinds, including foreign exchange headwinds, tariffs, and declines in European light commercial vehicle (LCV) industry volumes [1].

North America saw a 23% decrease in shipments, largely due to tariffs and temporary gaps in the product lineup as models like the Dodge Charger and Jeep Cherokee transitioned to new versions. Revenue and adjusted operating income (AOI) also declined, with revenue down 26% and AOI flat [2]. In Enlarged Europe, shipments dropped 7%, with revenue dipping 2% and AOI plunging 122% [2].

Despite these challenges, Stellantis reported sequential improvements in shipments, net revenues, AOI, and industrial free cash flows (FCF) compared to the second half of 2024. The company attributed this to an expanded product lineup, revitalized marketing efforts, and strong inventory discipline [1].

New CEO Antonio Filosa expressed optimism about the company's future, stating, "2025 is turning out to be a tough year, but also one of gradual improvement. Signs of progress are evident when comparing H1 2025 to H2 2024, in the form of improved volumes, net revenues, and AOI, despite intensifying external headwinds." He also announced plans for a new industrial plan in 2026, where "tough decisions" will be made to re-establish profitable growth [1].

Stellantis re-established financial guidance for the second half of 2025, expecting increased net revenues, low-single-digit AOI profitability, and improved industrial FCF results. The guidance assumes current tariff/trade rules as of July 29, 2025 [1].

The company also launched four new models in the first half of 2025, including the Citroën C3 Aircross, Fiat Grande Panda, Opel/Vauxhall Frontera, and Ram ProMaster Cargo BEV. These launches contributed to a 127-basis points increase in EU30 market share compared to the second half of 2024 [1].

Stellantis will present its first-half 2025 results in a live webcast and conference call on July 29, 2025, at 2:00 p.m. CEST/8:00 a.m. EDT [1].

References:
[1] https://www.stellantis.com/en/news/press-releases/2025/july/first-half-2025-results
[2] https://moparinsiders.com/stellantis-posts-2-5b-loss-in-h1-2025-as-tariffs-model-gaps-hit-hard/