Stellantis Braces For US$1.4 Billion Hit From Tariffs In Its H2 2025 Earnings

Stellantis released its first half (H1) 2025 earnings in full, and there are plenty of highs and lows to note across the board. (Image: Automotive News Europe)

Global automaking conglomerate Stellantis announced recently that it expects a US$1.4 billion (approx. RM5.93 billion) hit from the new US tariffs towards its earnings in the second half (H2) of this year (2025), reports Automotive News Europe.

Notably, this also comes despite an agreement between the Trump-led US government and the European Union (EU) for a 15% rate on cars and other goods. Initially, tariffs had a limited impact in the first half (H1) of this year, accounting for €300 million (approx. RM1.47 billion) costs, says Stellantis. The firm adds that the real effect of which will only come in H2.

Stellantis conveyed this outlook earlier this week when it released its H1 2025 financial results where it posted a sizeable loss amounting to €2.3 billion (approx. RM11.29 billion).

Steep new US tariffs have led to Stellantis posting a sizeable €2.3 billion (approx. RM11.29 billion) loss in 1H 2025.

A lot of this stems from the fact that the firm has been dealt with tariffs of up to 25% on its Canada- and Mexico-built vehicles sold in the US. Adding to which are vehicles exported to the US from EU by its core brands like Alfa Romeo, Maserati, Dodge, as well its range commercial vans. 

Having stabilised its leadership recently with newly installed CEO Antonio Filosa, Stellantis also reportedly reinstated its financial guidance that it initially withdrew in April citing evolving trade scenario and uncertain impacts of US tariffs then.

Looking ahead, Stellantis now sees a low-single-digit adjusted operating income margin in H2 of 2025, and it also forecasts improved industrial free cash flow in the same period versus H1. In the latter, the firm had burned through €3 billion (approx. RM14.72 billion) in cash too according to Automotive News Europe further.

Recently appointed new CEO Antonio Filosa now faces the tough tasks of revamping product ranges, as well as regaining martket share and investors' confidence.

“Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to re-establish profitable growth and significantly improved results,” said CEO Filosa in a statement.

Additionally, he now faces the challenges of revamping product ranges, as well as regaining market share and investors’ confidence.

Regarding the firm’s H1 performance, a quick glance show improvements across volumes, revenue and operating income versus H2 2024, and this is largely buoyed by new offering like the Fiat Grande Panda.

Reduced production of imported vehicles most impacted by tariffs did however see deliveries in North America slashed by 23% in H1 2025 to 647,000 units. In turn, regional nett revenue here also dropped 26% to €28.2 billion (approx. RM138.4 billion).

Stellantis' vast portfolio of brands totals at 14 marques, some standing more profitable than others.

Deliveries across ‘Enlarged Europe’ also declined by 7%, but it remains the largest region by volume for the firm with 1.3 million units shifted. Nett revenues in EU, on the other hand, dropped by 2%, resulting in the region barely breaking even with a €9 million (approx. RM44.17 million) adjusted operating income.

South America stood out as the most profitable region for Stellantis in H1 2025 as it brought a 3% increase in operating income to €1.2 billion (approx. RM5.89 billion) on revenue up by 5% to €7.8 billion (approx. RM38.28 billion). This region is also the firm’s third largest region by volume with 471,000 units shifted throughout H1 2025, marking a 20% rise too.