Stellantis Faces US$1.7 Billion Tariff Blow, Eyes US Growth

Stellantis warned of a €1.5 billion (US$1.7 billion) impact from US tariffs in 2025 but outlined plans to reconnect with its customer base and revive sales in the US market. The announcement came during new CEO Antonio Filosa’s first public appearance, where he pledged to expand the company’s vehicle lineup and return to volume growth after a challenging year.

“The first half was nowhere near where we want and need to be,” Filosa said during a call with analysts. “We still have tons of work to do. In particular, we are focused on bringing products back to segments where we have been absent.” He cited the decision to reintroduce the Hemi V8 engine for Ram trucks as one step aimed at meeting customer expectations.

Stellantis projects a low-single-digit adjusted operating margin for 2H25. It also expects higher net revenues and improved industrial free cash flow, following a €3 billion cash outflow in the first half of the year. The €1.5 billion tariff estimate includes €300 million already absorbed in the first half and reflects the upper end of the company’s previously disclosed range.

The company said its outlook incorporates tariff structures agreed upon in a recent trade framework between the European Union and the United States. That agreement established a 15% US import tariff on most EU goods, down from a previously threatened 30%. However, Stellantis faces greater exposure through a 25% tariff applied to vehicles imported from Mexico and Canada, which account for over 40% of its 1.2 million US vehicle sales in 2024.

Filosa, who succeeded Carlos Tavares in May, said, “I do not like blame—I like responsibility and accountability.” He declined to confirm whether Stellantis would consolidate its portfolio of 15 brands—including Jeep, Chrysler, Fiat, and Peugeot—but noted that brand diversity remains a competitive asset. “We want to make it work better. We want to be more effective and efficient in our brand portfolio management,” he added.

Stellantis withdrew its previous full-year guidance in April after a 70% decline in net profit in 2024, citing uncertainty related to tariffs. Shares listed in Milan rose as much as 3.8% during Filosa’s call with analysts, ending the day up 0.2%.

The company reported a net loss of €2.3 billion (US$2.5 billion) in 1H25—a sharp reversal from the €5.6 billion (US$6.1 billion) profit during the same period last year. Net revenues fell 13% year over year to €74.3 billion (US$80.5 billion), impacted by US tariffs, weak market conditions, and disruptions from the discontinuation of several vehicle models.

The tariff burden is not unique to Stellantis. General Motors reported a US$1.1 billion impact from tariffs in 2Q25, prompting investments in US-based manufacturing to mitigate future exposure, according to CEO Mary Barra. Volkswagen also disclosed a US$1.5 billion tariff-related cost for the first half of the year. These figures highlight the broader challenges facing global automakers amid rising trade barriers and shifting production strategies.