Stellantis reported a preliminary €2.3bn (R47.87bn) first-half loss as it faces the dual challenge of revamping its product ranges in Europe and the US while also dealing with the impact of President Donald Trump's tariffs on imports of vehicles and car parts.
Stellantis said on Monday it booked €3.3bn (R68.1bn) in pretax charges for the first half as it cancelled vehicle programmes, including a hydrogen fuel cell project, while investing more in popular hybrid cars in Europe and large petrol-powered models in the US market.
The carmaker's results are “worse than consensus, but we think poor numbers were expected,” Jefferies analyst Philippe Houchois wrote in a client note.
Earlier this month, Stellantis unveiled a €17,000 (R350,827) hybrid Fiat 500, which the carmaker is banking on to revive its ailing production in Italy.
The owner of a sprawling portfolio of brands, including Fiat, Peugeot, Chrysler and Jeep, said Trump's tariffs have cost it €300m (R6.19bn) so far as the company reduced vehicle shipments and cut production to adjust manufacturing levels.
Stellantis' loss, vs a €5.6bn (R115.57bn) net profit a year earlier, underscores the challenges for new CEO Antonio Filosa, who was appointed in May after a disastrous performance in the company's crucial US market in 2024 forced the ouster of former boss Carlos Tavares.
Under Tavares, industry experts said Stellantis had priced itself out of the US market and failed to update popular models, leaving the company with vast numbers of unsold cars. Stellantis' North American sales fell 25% year-on-year in the second quarter, it said on Monday, showing the carmaker still has a long way to go.
Stellantis also said it was seeing weak demand in Europe, especially for vans. The carmaker's shares fell 2.1% in morning trade, and are down 37% since the start of the year.
Rival Renault's shares fell 18% last week when it issued a profit warning citing softening demand for cars and vans in Europe.
Last year Stellantis imported more than 40% of the 1.2-million vehicles it sold in the US, mostly from Mexico and Canada.
In April this year, the company said it had reduced vehicle imports in response to tariffs and would calibrate “production and employment to reduce impacts on profitability”. Stellantis suspended its profit forecasts for 2025 due to uncertainty about tariffs, but said on Monday it was publishing its unaudited preliminary financial data to align analyst forecasts with the group's performance.
The group's first-half revenue totalled €74.3bn (R1.53-trillion), down from €85bn (R1.75-trillion) in the first half of 2024 but up from the second half of 2024 when revenue totalled €71.8bn (R1.48-trillion).
“Results reflect the early stages of actions being taken to improve performance and profitability, with new products expected to deliver larger benefits in the second half of 2025,” JPMorgan analysts said in a note.
Stellantis said it burnt through €2.3bn (R47.47bn) cash in the first half.
Overall second quarter shipments fell by 6% compared with the same period last year, to an estimated 1.4-million vehicles, it said.
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