Stellantis Reports €2.3 Billion Loss Due to 25% North American Sales Decline

Stellantis, the automotive conglomerate that owns the Jeep brand, reported a substantial net loss of €2.3 billion ($2.7 billion) for the first half of 2025. This significant financial setback was primarily driven by a sharp decline in sales within North America, which fell by 25 percent in volume during the second quarter compared to the same period last year. The company's financial performance was further compounded by the initial impact of new U.S. tariffs, which added an additional €300 million in negative effects. These tariffs disrupted Stellantis' plans to boost its struggling performance in the North American market, leading to a significant disruption in production and increased costs due to higher duties.

The company's first-half net revenues dropped by 12.6 percent to €74.3 billion, according to preliminary and unaudited results. Sales of vehicles fell by six percent in the second quarter year-on-year, following a nine percent decline in the first three months of 2025. Stellantis attributed the sharp drop in North American sales volume to factors including the reduced manufacture and shipments of imported vehicles, most impacted by tariffs, as well as lower sales for corporate fleets. The company paused production at some plants in Canada and Mexico in April as the tariffs went into force, further exacerbating the financial strain.

In addition to the impact of tariffs, Stellantis took a €3.3 billion charge, primarily related to program cancellation costs, platform impairments, and the net impact of recent legislation eliminating the Corporate Average Fuel Economy (CAFE) penalty rate. This legislation, approved earlier in the year, removed the penalties for not meeting fuel economy targets, allowing automakers to produce and sell more higher-polluting cars in the United States. The company is in the early stages 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. The company's new chief executive, Antonio Filosa, took over in June and immediately launched a management shake-up. Filosa, who previously headed the North American region, retained responsibility for the region, which accounts for most of the company's profits. The overall six-percent drop in sales volumes was in line with analyst expectations, but the 25-percent drop in North American sales was double the 12 percent foreseen by analysts.

The financial setback experienced by Stellantis underscores the broader economic challenges faced by the automotive industry. The company's struggles highlight the need for strategic adjustments and innovative solutions to navigate the complex landscape of international trade and market dynamics. As Stellantis continues to grapple with these challenges, it remains to be seen how the company will adapt and reposition itself to achieve long-term sustainability and growth. The company is scheduled to release audited first-half results on July 29.