US tariffs, laws push Jeep owner Stellantis into 2.3-bn-euro first-half net loss

Jeep owner Stellantis said on Monday it suffered a massive loss in the first half of the year, when it felt the first impact of new US tariffs and took a massive charge following a change in US laws.

The 2.3-billion-euro ($2.7-billion) net loss in the first half of the year came as sales in North America continued to slump, down 25% by volume in the second quarter year-on-year.

The carmaker, whose stable of brands also includes Peugeot, Citroën and Fiat, said first-half net revenues dropped 12.6% to 74.3 billion euros, according to the preliminary and unaudited results.

Sales of vehicles fell by 6% in the second quarter year-on-year, after having dropped 9% in the first three months of 2025.

Stellantis said “the early effects of US tariffs” had a 300-million-euro negative impact and disrupted its plans to respond to its struggling performance in North America.

Automakers have struggled to respond to a new US tariff of 25% on imported cars that are not largely made within North America.

Stellantis fell into a net loss when it took a 3.3-billion-euro charge, which it said was “primarily related to program cancellation costs and platform impairments, net impact of the recent legislation eliminating the CAFE penalty rate and restructuring”.

US President Donald Trump’s massive tax and spending legislation, approved earlier this month, removed the penalties for not respecting the so-called CAFE fuel economy targets, meaning automakers can produce and sell more higher polluting cars in the United States.

Stellantis suspended its financial guidance in April due to the heightened uncertainty generated by US tariffs.

The company said it was in the early stage of taking action to improve performance and profitability, with new products expected to deliver a larger impact in the second half of 2025.

Shares in Stellantis fell more than two percent as trading got underway on the Paris stock exchange.

Stellantis said it would release audited first half results on July 29 as scheduled.

© 2025 AFP