Stellantis is also grappling with adverse foreign exchange fluctuations, intensifying competition from Chinese manufacturers, and looming risks of fines under the EU’s carbon emissions regulations, Reuters noted.
29 Jul 2025 | 2406 Views | By Autocar Professional Bureau
Stellantis has flagged a significant 1.5-billion-euro ($1.73 billion) impact from U.S. tariffs in 2025, warning of broader operational headwinds and projecting low single-digit operating income for the second half of the year. According to a Reuters report, the automaker disclosed the updated estimate on Tuesday, based on tariff rules that ...
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Stellantis has flagged a significant 1.5-billion-euro ($1.73 billion) impact from U.S. tariffs in 2025, warning of broader operational headwinds and projecting low single-digit operating income for the second half of the year. According to a Reuters report, the automaker disclosed the updated estimate on Tuesday, based on tariff rules that took effect the same day.
The company noted that 300 million euros of the total tariff burden had already been incurred in the first half of 2025. Reuters reported that this revised figure sits at the upper end of the previously forecasted 1.0–1.5 billion euro range announced by Stellantis during its preliminary earnings release last week.
Stellantis is also grappling with adverse foreign exchange fluctuations, intensifying competition from Chinese manufacturers, and looming risks of fines under the EU’s carbon emissions regulations, as per the report.These factors are compounding what has already been a difficult year for the automaker.
Investor sentiment reacted negatively to the update. Reuters noted that Stellantis shares fell by 2.3% in morning trade, making it the sharpest decliner among Milan’s blue-chip stocks, after dipping as much as 4.8% earlier in the session. Analysts at Jefferies cited a lack of clarity in the company’s second-half guidance, while Bernstein analysts stated that the vagueness “undermined the stock,” according to the Reuters report.
Despite these challenges, Stellantis has forecast higher net revenue and improved industrial free cash flow in the second half, compared to a first half in which it recorded negative free cash flow of 3 billion euros. According to Reuters, the company’s new CEO Antonio Filosa acknowledged the difficulties but emphasized a forward-looking strategy.
“Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to re-establish profitable growth and significantly improved results,” Filosa said in a statement quoted by Reuters.
Filosa, who took over in May, replaced Carlos Tavares, who was ousted in December 2024 after Stellantis posted a dismal performance in the crucial U.S. market. Reuters noted that Filosa, a company veteran, now oversees a portfolio of 15 global brands and is expected to unveil his vision for the group during a results call later in the day.
Reuters also reported that in April, Stellantis withdrew its earlier guidance for a moderate recovery in 2025, citing the uncertain impact of U.S. tariffs and a shifting global trade landscape. While the U.S. and EU recently reached a trade framework deal imposing a 15% tariff on most EU goods — lower than the initially proposed 30% — Stellantis remains particularly exposed to the 25% tariffs levied on vehicle imports from Mexico and Canada, which are in addition to the standard 2.5% duty. Reuters highlighted that over 40% of the 1.2 million vehicles Stellantis sold in the U.S. last year came from these two countries.
In terms of financial performance, Stellantis reported a 13% decline in first-half net revenue to 74.3 billion euros. The automaker posted an adjusted operating income margin of just 0.7% and a net loss of 2.3 billion euros. Notably, revenue from North America, traditionally the company's most profitable region, fell to just over 28 billion euros, trailing Europe’s 29.2 billion euros in the same period.