Stellantis braces for substantial loss amid US tariffs and leadership changes

Stellantis, the automotive giant behind such marques as Peugeot, Jeep, Chrysler and Fiat, is confronting a tumultuous period following the announcement of a €2.3 billion net loss for the first half of 2025. Fresh US tariffs on imported vehicles are expected to deliver a further €1.5 billion blow to the company’s financial results, compounding an environment already marked by falling revenues and strategic shifts.

In its latest earnings report, Stellantis revealed a 13 per cent decline in net revenues to €74.3 billion, with American operations particularly hard hit. Revenues from the crucial US market slumped by 26 per cent to €28.2 billion, a result of reduced production for models most exposed to the revised tariffs. The group has also opted to abandon plans for hydrogen-powered electric vehicles, shelving an ambitious project to establish the world’s first manufacturing plant dedicated to the technology.

The company’s changing fortunes have been underscored by a recent leadership transition. Antonio Filosa, a long-serving executive who took the helm from Carlos Tavares last month, has acknowledged that Stellantis is enduring “a tough year.” However, he noted signs of “gradual improvement” and expressed strong confidence in the resilience of both staff and product pipeline. The new chief executive highlighted the importance of continued decisive action to restore profitable growth and deliver better performance across Stellantis’s global operations.

Inventory levels have edged slightly higher, rising 1 per cent to 1.2 million units since the close of 2024. Meanwhile, shares slipped by 0.6 per cent to €8.22 following the announcement. The transition in leadership stemmed from tensions within the boardroom, with Carlos Tavares parting ways with the group after reported disagreements about the scale and impact of his cost-cutting agenda. Concerns emerged regarding both the quality of vehicles rolling off the production line and Stellantis’s capacity to innovate and bring new models to market.

As the company navigates this challenging landscape of regulatory headwinds and strategic transformation, the actions of its newly installed leadership team will prove critical in determining the carmaker’s trajectory for the remainder of the year and beyond.