US tariffs help push Jeep owner Stellantis into big loss - Economy
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 percent by volume in the second quarter year-on-year.
The carmaker, whose stable of brands also includes Peugeot, Citroen and Fiat, said first-half net revenues dropped 12.6 percent to 74.3 billion euros, according to the preliminary and unaudited results.
Sales of vehicles fell by six percent in the second quarter year-on-year, after having dropped nine percent 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 boost its struggling performance in North America.
Automakers have struggled to respond to US President Donald Trump's new US tariff of 25 percent on imported cars that are not largely made within North America.
The company, which also owns the Chrysler, Dodge and Ram Truck brands, paused production at some plants in Canada and Mexico in April as the tariffs went into force.
Stellantis said the sharp drop in North American sales volume was "due to factors including the reduced manufacture and shipments of imported vehicles, most impacted by tariffs," as well as lower sales for corporate fleets.
Restructuring charge
Stellantis also took a 3.3-billion-euro charge, which it said was "primarily related to programme cancellation costs and platform impairments, net impact of the recent legislation eliminating the CAFE penalty rate and restructuring".
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.
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.
Stellantis suspended its financial guidance in April due to the heightened uncertainty generated by US tariffs.
Analysts at finance group ODDO BHF said a drop in sales was widely expected and noted that new chief executives often clean house by passing new provisions or restructuring charges.
Company veteran Antonio Filosa took over as chief executive in June and immediately launched a management shake-up.
Filosa headed up the North American region that accounts for most company profits and whose struggles last year precipitated the sacking of Carlos Tavares, and has retained responsibility for the region.
While the overall six-percent drop in sales volumes was in line with analyst expectations, according to ODDO BHF, the 25-percent drop was double the 12 percent foreseen by analysts.
Shares in Stellantis fell 2.1 percent in morning trading on the Paris stock exchange, which was 0.4 percent lower overall.
Stellantis said it would release audited first half results on July 29 as scheduled.
Follow us on:
Short link:
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
See - Sada Elbalad
3 hours ago
- See - Sada Elbalad
Central Banks Show No Sign of Slowing Their Rush to Gold as Geopolitical Tensions Intensify Amid Trump's Policies
Waleed Farouk Central banks around the world show no indication of slowing down their push into gold, as the political and economic turmoil resulting from former U.S. President Donald Trump's foreign policies continues to fuel demand for the precious metal. According to a research report by global investment firm Invesco, central banks are steadily expanding their gold holdings, with nearly 50% of monetary authorities planning to increase their gold allocations over the next three years. 'Amid rising uncertainty and limited currency diversification options, gold has re-emerged as a fundamental pillar for enhancing reserve resilience,' said Rod Ringrow, Head of Official Institutions at Invesco. 'Gold is valued not just for its traditional role as a safe haven, but also for its political neutrality — a critical factor as geopolitical risks rise,' he added. Trump's presidency triggered widespread volatility in financial markets. His announcement of 'Liberation Day' tariffs on April 2 had a sharp negative impact on investor sentiment. U.S. stock markets recorded their worst week since the COVID-19 crash, while Asian stocks suffered their steepest declines in decades. Commenting on current market risks, JPMorgan CEO Jamie Dimon stated during the bank's quarterly earnings release last week: 'Significant risks remain — including tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits, and inflated asset prices.' Invesco's 13th edition of its Global Sovereign Asset Management Study (49 pages) quoted a central banker from Latin America as saying: 'Gold is a diversifier, but it is also a form of protection — a backstop when all else fails.' The study's findings align with a June survey conducted by the World Gold Council, which polled 72 central banks. It showed a record number of respondents expecting to increase their gold holdings over the next 12 months, with 43% indicating plans to boost reserves — up from 29% the previous year. Shaokai Fan, Head of Central Banks at the World Gold Council, said: 'Western countries have stopped selling gold, while emerging markets are accelerating purchases, aiming to catch up and build larger reserves.' Speaking specifically about 2024, Fan described central bank demand for gold as 'insatiable,' noting that purchases had exceeded 1,000 metric tons for the third year in a row. Central banks have become one of the primary forces driving the ongoing gold bull market, which has seen prices double since late 2022 — a trend that accelerated following Russia's invasion of Ukraine. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks
Egypt Independent
5 hours ago
- Egypt Independent
Ethiopia declares Grand Ethiopian Renaissance Dam just the beginning: More nile dams planned for development
The CEO of Ethiopia's Grand Ethiopian Renaissance Dam (GERD) Coordination Office, Aregawi Berhe, announced that Ethiopia requires even more water dams to achieve development in its agriculture and energy sectors, stating unequivocally that 'GERD is not the end of the road.' Speaking to Ethiopian media on Wednesday, Aregawi added that the GERD project is merely a first step in a long trajectory of self-driven development in the water and energy sectors. He emphasized that 'Ethiopia cannot be content with just one dam.' He highlighted the need for additional dams to serve vital purposes, primarily supporting the agricultural sector, which he described as a fundamental pillar of the national economy and food security. He believes Ethiopia has been slow in utilizing its water resources compared to other pioneering nations. 'We will not stop at just one dam; we need dams that serve other purposes, including agriculture,' he reiterated, viewing the GERD project as the beginning of correcting this path and a strategic step towards catching up with development. Aregawi also mentioned that GERD was completed with full internal funding, without reliance on foreign loans or aid. This statement came in response to previous claims by President Donald Trump about U.S. financing for the dam. Ethiopia is preparing for the official inauguration ceremony of GERD next September, with increasing regional and international attention on this massive project, which is expected to alter the balance of energy and development in the Horn of Africa region. Recently, President Donald Trump spoke about GERD on multiple occasions, stating during a White House press conference with NATO Secretary-General Mark Rutte: 'The United States financed the GERD, and I don't know why.' Earlier this July, Ethiopian Prime Minister Abiy Ahmed announced the completion of GERD's construction and set next September as the inauguration date, coinciding with the end of summer. In response, Egypt reiterated its categorical rejection of Ethiopia's continued imposition of a fait accompli through unilateral measures related to the Nile River, considering it a shared international water resource. Egyptian Minister of Water Resources and Irrigation, Hani Sewilam, stated in a press release that the Ethiopian side has persistently promoted the completion of the dam, calling it 'illegal and in violation of international law,' despite the absence of a binding agreement with downstream nations and despite the substantive reservations expressed by both Egypt and Sudan. He added that Ethiopia's policy is a 'clear violation of international law, especially the rules related to the equitable and reasonable use of international watercourses and the obligation not to cause significant harm.'
See - Sada Elbalad
a day ago
- See - Sada Elbalad
Gold Prices Decline Following U.S.-Japan Trade Deal and Treasury Yield Recovery
Waleed Farouk Gold prices witnessed a sharp drop in both local and international markets by mid-day trading on Wednesday, as a wave of profit-taking followed the yellow metal's climb to a five-week high. The improved risk appetite in global markets also weighed on precious metals, traditionally considered safe-haven assets. In Egypt, the price of 21-karat gold fell by EGP 30 to record EGP 4,680 per gram. Meanwhile, the international ounce price lost approximately $42, dropping to $3,390. The price of 24-karat gold reached EGP 5,349 per gram, while 18-karat gold recorded EGP 4,011. The price of the gold pound fell to EGP 37,440. Yesterday, prices had closed with local gains of EGP 25. The 21-karat gold started the day at EGP 4,685 and ended at EGP 4,710, while the ounce surged from $3,399 to $3,432. U.S.-Japan Trade Deal Lifts Market Sentiment Investor risk appetite rose significantly after the United States and Japan announced a historic trade agreement late Tuesday. U.S. President Donald Trump described it as 'the largest ever.' The deal includes a 15% tariff on Japanese car imports to the U.S. and the establishment of a $550 billion Japanese investment fund to be deployed within the United States. Global Markets: Stable Dollar, Lower Oil Prices At the same time, the U.S. dollar saw modest gains, and yields on 10-year Treasury bonds rebounded from a two-week low—raising the opportunity cost of holding non-yielding assets like gold. Meanwhile, U.S. Treasury Secretary Scott Bissonnette announced that negotiators from the U.S. and China would meet next week in Stockholm to discuss an extension of the deadline to reach a new trade agreement. This announcement added further optimism to markets and reduced demand for safe-haven assets. Fed Policy Uncertainty Lingers Despite the improved risk appetite, uncertainty surrounding the Federal Reserve's monetary policy continues to cast a shadow over global markets. President Trump intensified his pressure on the Fed, renewing his call for interest rate cuts and directly demanding the resignation of Fed Chair Jerome Powell. He also urged the Treasury Secretary to launch a comprehensive review of the Fed's policies—raising serious concerns over the institution's independence. Markets now turn their attention to the upcoming Federal Reserve policy meeting scheduled for July 29–30, with expectations leaning toward a rate hold amid a lack of clear signals for imminent changes in monetary direction. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks
