Stellantis, the global automotive powerhouse behind brands such as Jeep, Dodge, Fiat, Chrysler and Peugeot, has reinstated its financial guidance for 2025 following the announcement of a significant loss in the first half of the year.
The company reported a net loss of €2.3 billion for the opening six months, reversing the €5.6 billion net profit it posted over the same period last year.
This unanticipated setback was first revealed in a surprise trading update issued in mid-July, with Stellantis attributing the loss to a discrepancy between market expectations and the company’s actual performance.
A major contributing factor was the impact of tariffs, which Stellantis now estimates will cost approximately €1.5 billion for the full year, including €300 million incurred during the first half.
The tariffs, arising mainly from ongoing trade disputes and disruptions to supply chains, continue to exert pressure on the global automotive sector. Industry analysts have observed that Stellantis is not alone in facing these challenges, as car manufacturers worldwide contend with inflationary pressures, semiconductor shortages, and rising raw material costs.
Antonio Filosa, who recently assumed the role of CEO, expressed cautious optimism despite the difficult conditions.
“My first weeks as CEO have reconfirmed my strong conviction that we will fix what’s wrong in Stellantis by capitalising on everything that’s right in Stellantis – starting from the strength, energy and ideas of our people, combined with the great new products we are now bringing to market,” he stated.
He acknowledged the tough environment, noting, “2025 is turning out to be a tough year, but also one of gradual improvement.”
Observers highlight that Stellantis’s strategy to accelerate its electrification plans, launch new vehicle models, and optimise operations will be critical to its recovery. The CEO stressed this direction by adding, “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.”
This announcement coincides with Stellantis’s intensified efforts to expand its electric vehicle (EV) range, investing to remain competitive in the changing market. Competitors such as Ford, Volkswagen and Tesla have faced similar obstacles, yet continue driving innovation and market gains.
Market analysts anticipate that Stellantis’s advantage lies in its diverse portfolio of brands and global reach, which may enable a robust recovery particularly as demand for EVs surges across Europe and North America. For example, Peugeot and Fiat have both introduced new electric models this year, aligning with evolving emissions regulations and shifting consumer preferences.