The owner of Jeep Stellantis declared Monday that he had undergone a huge loss in the first half of the year, when he heard the first impact of the new US tariffs and took a great charge following a change in the US laws.The net loss of 2.3 billion euros ($ 2.7 billion) in the first half of the year came when sales in North America continued to collapse, down by 25 percent in volume in the second quarter of year.
The car manufacturer, whose stable of brands also includes Peugeot, Citroen and Fiat, said that the net revenues of the first half decreased by 12.6 percent to 74.3 billion euros, according to the preliminary and not audited results.
Vehicle sales decreased six percent in the second quarter of year by year, after losing nine percent in the first three months of 2025.Stellantis said that “the first effects of the US rates” had a negative impact of 300 million euros and interrupted its plans to increase its performance in difficulty in North America.
The car manufacturers have struggled to respond to the new American rate of the President of the United States Donald Trump of 25 percent on imported cars that are not largely made of North America.
The company, which also owns the Chrysler, Dodge and Ram Truck brands, paused production in some plants in Canada and Mexico in April while the rates entered into force.
Stellantis said that the strong drop in the volume of North American sales was “due to factors including the reduced production and shipments of imported vehicles, more affected by rates”, as well as lower sales for corporate fleets.
Renovation charge
Stellantis also took on a 3.3 billion euro debit, which according to this was “mainly related to the costs of canceling the program and the disabilities of the platform, the net impact of the recent legislations that eliminate the penalty rate of the Cafe and the renovation”.
The massive tax and spending legislation of Trump, approved at the beginning of this month, has removed the penalties for not having respected the so -called coffee fuel saving objectives, which means that car manufacturers can produce and sell higher polluting cars in the United States.
The company said she was in the initial phase of acting to improve performance and profitability, with new products that should offer a greater impact in the second half of 2025.
Stellantide suspended his financial guide in April due to the careful uncertainty generated by the US rates.
The analysts of the Oddo BHF financial group said that a decline in sales was widely foreseen and have noticed that the new managers often clean the house by approving new provisions or renovations.
The veteran of the company Antonio Filosa took over as a managing director in June and immediately launched a management Shake-up.
Filosa led the North American region which represents the profits of most of the company and whose struggles last year fell the dismissal of Carlos Tavares and maintained responsibility for the region.
While the overall drop of the six percent of sales volumes was in line with the expectations of the analysts, according to Oddo Bhf, the drop of 25 percent was twice the 12 % expected by analysts.
The actions of Stellantide decreased by 2.1 percent in morning negotiations on the Paris Stock Exchange, which was 0.4 percent lower.
Stellantis said he would release the results of the first half verified on July 29 as expected.
Discover more from Gautam Kalal
Subscribe to get the latest posts sent to your email.
Be First to Comment