Latest news with #R48bn

IOL News

US tariffs, laws push Jeep owner Stellantis into €2. 3bn first-half net loss

Jeep owner Stellantis said on Monday it suffered a massive loss in the first half of the year. Image: File 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 (R48bn) 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, Citroen and Fiat, said first-half net revenues dropped 12.6% to €74.3bn, 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 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. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Stellantis fell into a net loss when it took a €3.3bn 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". 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 2% as trading got underway on the Paris stock exchange. Stellantis said it would release audited first half results on July 29 as scheduled. AFP