Stellantis is hit by tariffs of 1.2 billion euros in the second half
Stellantis NV expects to win a hit of around 1.2 billion euros ($1.4 billion) from tariffs later this year as manufacturers of Jeep Sports Utility Vehicles and Fiat vehicles recover financial guidance after the European Union. Trade Contract With the United States.
The manufacturer said Tuesday that it was looking at a low operating profit margin for the second half, single-digit adjusted. Stellantis’ forecast for the past year – discarded in April due to tariff disruptions – was forecasting the margins of numbers on one side. The company announced earlier this month surprise A first half net loss of 2.3 billion euros after cutting investments and tallying the costs of the trade war.
New CEO Antonio Firosa is not only in the company’s failures, but also in the automotive market. President Donald Trump’s trade movement has raised costs and shaking global supply chains, but the Chinese manufacturers led by BYD are being pushed up into the stagnant European car market.
The Stellantis issue is the most significant in previous profit centers North America, with cargo falling 25% in the second quarter. The impact of tariffs is to add additional costs and weigh operating and net profits. After a temporary halt of production in Canada and Mexico, the job increased parts prices and Stellantis was lost in the first half.
Stellantis shares fell by 4.1% in Milan. This year, stocks have fallen by about 37%.
After a decline in delivery in Europe, North America, the Middle East and Africa, revenues from June to June fell over the same period last year. They rose in South America due to increased demand in Argentina. The company said its volume, revenue and operating profits have improved compared to the second half of 2024 due to new products such as the Fiat Grande Panda.
Filosa is also under pressure to address Europe’s excess capacity and improve some of the group’s struggling brands. They include luxury car maker Maserati, which recorded a -38% margin in the first half after the cargo fell.
“In the flat market, the lower the stellarantis share, the more we need to reduce our cost base, but rhetoric from management suggests that past cuts have been too deep.” “For investors (and us), this presents something like a challenge.”
The company bets that new models, including the hybrid Jeep Cherokee and the six-pack of combustion engine Dodge chargers, will help improve sales.
Stellantis lost production and responded to a higher duties, resulting in a hit of around 300 million euros from US tariffs in the first half. Chief Financial Officer Doug Ostermann flagged investors earlier this month, saying the tax impact is likely to be “significantly” higher in the second half. The new CEO will be talking to analysts later today.