Jeep maker Stellantis warns of a shock $2.7 billion loss as tariffs bite

Auto elephantine Stellantis expects a nett nonaccomplishment of 2.3 cardinal euros ($2.68 billion) successful the archetypal fractional of the twelvemonth amid pre-tax nett charges and aboriginal effects of U.S. tariffs, the institution said Monday successful its preliminary figures.

Stellantis, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, estimated first-half nett gross of 74.3 cardinal euros, down from 85 cardinal euros from the aforesaid play past year.

The preliminary figures travel successful the lack of fiscal guidance, which the institution suspended connected April 30.

Stellantis said it taken the bonzer determination to people preliminary and unaudited fiscal accusation for the archetypal fractional of the twelvemonth owed to the quality betwixt expert statement forecasts and the firm's show implicit the period.

The update reaffirms the standard of the situation up for caller CEO Antonio Filosa, who was appointed successful May aft his predecessor Carlos Tavares unexpectedly resigned amid a crisp driblet successful profit, falling income and problems successful the U.S.

Milan-listed shares of Stellantis traded 2.1% little Monday morning, paring immoderate of its earlier losses. The banal terms is down astir 39% year-to-date.

Stellantis said 4 cardinal factors importantly impacted connected results done the archetypal six months of the year.

These included early-stage actions taken to amended profitability, astir 3.3 cardinal euros of pre-tax nett charges, adverse impacts to adjusted operating income from higher concern costs, arsenic good arsenic changes successful overseas speech rates and the aboriginal effects of U.S. tariffs.

Stellantis said it expected an archetypal deed of 300 cardinal euros successful its first-half results owed to nett tariffs incurred, arsenic good arsenic planned accumulation losses arsenic portion of its effect plan.

The company's fiscal results for the archetypal fractional of 2025 volition beryllium released arsenic scheduled connected July 29.

Stellantis besides said its wide second-quarter shipments fell to an estimated 1.4 cardinal vehicles, down 6% year-on-year.

In North America, Stellantis said second-quarter shipments were expected to diminution by astir 109,000 units, little by an yearly 25%, fixed the reduced manufacturing and shipment of imported vehicles — which are astir impacted by tariffs — and little fleet transmission sales.