US Tariffs Help Push Jeep Owner Stellantis Into Big Loss
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.
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Int'l Business Times
an hour ago
- Int'l Business Times
US Envoy Witkoff To Visit Moscow On Wednesday
US envoy Steve Witkoff will meet on Wednesday with Russian leadership in Moscow, an American source confirmed, as President Donald Trump's deadline to impose fresh sanctions over Russia's war in Ukraine looms. The source did not specify if the meetings will include Russian President Vladimir Putin, whom Witkoff has met with several times previously. Trump has given Russia until Friday to halt its offensive in Ukraine or face new penalties. The White House has not outlined specific actions it plans to take on Friday, but Trump has previously threatened to impose "secondary tariffs" targeting Russia's remaining trade partners, such as China and India. The move would aim to stifle Russian exports, but would risk significant international disruption. Despite pressure from Washington, Russia has continued its onslaught against its pro-Western neighbor. Three rounds of peace talks in Istanbul have failed to make headway on a possible ceasefire, with the two sides appearing as far apart as ever. Moscow has demanded that Ukraine cede more territory and renounce Western support. Kyiv is calling for an immediate ceasefire, and Ukrainian President Volodymyr Zelensky last week urged his allies to push for "regime change" in Moscow. In recent weeks, Trump has increasingly voiced frustration with Putin over Moscow's unrelenting offensive. When reporters asked Trump on Monday what Witkoff's message would be to Moscow, and if there was anything Russia could do to avoid the sanctions, Trump replied: "Yeah, get a deal where people stop getting killed." Kremlin spokesman Dmitry Peskov said Monday it considered the talks with Witkoff to be "important, substantial and helpful" and valued US efforts to end the conflict. Putin, who has consistently rejected calls for a ceasefire, said Friday that he wants peace but that his demands for ending his nearly three-and-a-half-year offensive were unchanged. Russia has frequently called on Ukraine to effectively cede control of four regions Moscow claims to have annexed, a demand Kyiv has called unacceptable. Putin also wants Ukraine to drop its ambitions to join NATO. The visit comes after Trump said that two nuclear submarines he deployed following an online row with former Russian president Dmitry Medvedev were now "in the region." Trump has not said whether he meant nuclear-powered or nuclear-armed submarines. He also did not elaborate on the exact deployment locations, which are kept secret by the US military. Russia, in its first comments on the deployment, urged "caution" Monday. "Russia is very attentive to the topic of nuclear non-proliferation. And we believe that everyone should be very, very cautious with nuclear rhetoric," the Kremlin's Peskov said.
DW
4 hours ago
- DW
Ukraine's Zelenskyy talks to Trump on sanctions, drone deal – DW – 08/05/2025
Ukrainian President Volodymyr Zelenskyy says he had a "productive" call with Donald Trump, covering sanctions and a major drone deal. Meanwhile, Russian attacks on Ukraine killed six. DW has more. President Zelenskyy said he discussed sanctions, Russian strikes, and a major drone production deal with the US president. Trump has reportedly given Putin until August 8 to make peace or face harsher sanctions, with Zelenskyy saying Moscow is already feeling the pressure. Ukraine has been ready to finalize what Zelenskyy called one of the strongest drone deals yet, as Kyiv leans more on foreign defense investment. Meanwhile, President Trump has said that declining global energy prices could pressure Russian President Vladimir Putin to halt the war in Ukraine. Ukrainian President Volodymyr Zelenskyy has said he held a "productive" call with US President Donald Trump on Tuesday, focusing on ending the war, sanctions against Russia, and a planned US-Ukraine drone production deal. Zelenskyy posted on X that Trump was "fully informed" about ongoing Russian strikes on Kyiv and other Ukrainian cities. The conversation came amid growing frustration from Trump toward Russian President Vladimir Putin. Trump has given Putin until August 8 to make peace or face tougher sanctions. "Of course, we spoke about sanctions against Russia," said Zelenskyy. "Their economy continues to decline, and that's exactly why Moscow is so sensitive to this prospect and President Trump's resolve. This can change a lot." Zelenskyy also said Ukraine was prepared to finalize a drone production deal with the US, calling it "one of the strongest agreements" of its kind. "The draft agreement on drones has already been prepared by the Ukrainian side, we are ready to discuss it in detail and conclude it," Zelenskyy said. Kyiv is increasingly turning to foreign investment to build up its domestic defense industry. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video US President Donald Trump has said that declining global energy prices could pressure Russian President Vladimir Putin to halt the war in Ukraine. "If energy goes down enough, Putin is going to stop killing people," Trump told CNBC on Tuesday. "If you get energy down another $10 a barrel, he's going to have no choice because his economy stinks." Trump set an August 8 deadline for Putin to move toward ending the war or face tougher US sanctions. His administration has also ramped up pressure on India and China to stop buying Russian oil. The US president said falling oil prices were driven by increased production worldwide, including by OPEC and allied countries. "If you notice OPEC and OPEC+, they're drilling more because I think they want me happy," Trump said. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video US President Donald Trump has repeated his threat to sharply raise tariffs on Indian goods within the next 24 hours, citing the country's continued oil trade with Russia. "We settled on 25% but I think I'm going to raise that very substantially over the next 24 hours, because they're buying Russian oil," Trump told broadcaster CNBC on Tuesday. "They're fueling the war machine," he added. "And if they're going to do that, then I'm not going to be happy." Trump's remarks come ahead of the deadline he set for Russia to reach a ceasefire agreement with Ukraine. That 10-day window, which began last Tuesday, is set to expire soon. If no agreement is reached, Trump said he plans to impose sanctions on Russia's trading partners, including India. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Russian strikes across eastern Ukraine have killed six people and wounded at least a dozen more, Ukrainian authorities said on Tuesday, as Moscow ramps up attacks ahead of a looming US deadline for peace progress. "Russian terrorists inflicted a massive strike on the railway infrastructure of Lozova," Ukrainian Railways said in a Telegram post. Among the dead was a railway mechanic. A passenger train was left mangled and scorched, and the station building was partly destroyed. Kharkiv Governor Oleg Synegubov confirmed two deaths in Lozova and said several trains had been rerouted. President Volodymyr Zelensky said 25 Shahed drones hit the city, damaging civilian infrastructure including a depot and station, with 10 people injured. Ukraine's air force reported that Russia fired 46 attack drones and one ballistic missile in the barrage. Lozova Mayor Sergiy Zelenskyy called it "the most massive attack" on the city since the war began. Elsewhere, two people were killed in Sumy region at an agricultural facility, and two more died in Zaporizhzhia when a Russian drone hit a house, officials said.
Int'l Business Times
6 hours ago
- Int'l Business Times
Trump Signals Tariffs On Pharma, Chips As Trade War Widens
US President Donald Trump signaled Tuesday that fresh tariffs on imported pharmaceuticals and semiconductors could be unveiled as soon as the coming week, as he presses on in efforts to reshape global trade. Trump's latest comments, in an interview on CNBC, come days before a separate set of tariff hikes takes effect on dozens of economies later this week. The sweeping tariff plans have sparked a flurry of activity as governments seek to avert the worst of his threats -- with Switzerland's leaders heading to Washington on Tuesday in a last-minute push to avoid punitive duties. But he appears set to widen his trade wars further. The US president told CNBC that upcoming tariffs on imported pharmaceuticals could reach 250 percent, while adding that he plans for new duties on foreign semiconductors soon. "We'll be putting (an) initially small tariff on pharmaceuticals, but in one year, one-and-a-half years, maximum, it's going to go to 150 percent," Trump said. "And then it's going to go to 250 percent because we want pharmaceuticals made in our country." Trump also said that Washington will be announcing tariffs "within the next week or so." He added: "We're going to be announcing on semiconductors and chips." Trump has taken aim at products from different countries with varying tariff rates after imposing a 10-percent levy on almost all trading partners in April -- with excluded products targeted by sector. While Swiss leaders are seeking to stave off a US tariff hike to 39 percent come Thursday -- which excludes sectors like pharma -- Trump's plans for a steep pharma levy will likely be a point of contention in any talks. Pharmaceuticals represented 60 percent of Swiss goods exports to the United States last year. Besides probing pharmaceuticals and chips imports, Trump has already imposed steep duties of 50 percent on imports of steel and aluminum, alongside lower levels on autos and parts. In the same CNBC interview, Trump said he expects to raise the US tariff on Indian imports "very substantially over the next 24 hours" due to the country's purchases of Russian oil. This is a key revenue source for Moscow's military offensive on Ukraine. His pressure on India comes after signaling fresh sanctions on Moscow if it did not make progress by Friday towards a peace deal with Kyiv, more than three years since Russia's invasion. Moscow is anticipating talks this week with the US leader's special envoy Steve Witkoff, and the Kremlin has criticized Trump's threat of raising tariffs on Indian goods. Weak employment data last week pointed to challenges for the US economy as companies take a cautious approach in hiring and investment while grappling with Trump's radical -- and rapidly changing -- tariffs policy. The tariffs are a demonstration of raw economic power that Trump sees as putting US exporters in a stronger position while encouraging domestic manufacturing by keeping out foreign imports. But the approach has raised fears of inflation and other economic fallout in the world's biggest economy.
