Stellantis, a multinational automotive corporation in the Netherlands, is bracing for a financial hit in the second half of 2025, expecting a Euro 1.2 billion (USD 1.4 billion) impact from new US tariffs as the global auto industry grapples with changing regulatory barriers and trade winds. After a relatively small Euro 300 million (USD 327 million) contribution in H1, the automaker believes the "real bite" will come as the new 25 per cent duties on imported cars and parts take effect (announced by President Donald Trump).
Trade policies disrupt Stellantis’ North American operations
Stellantis is exposed to tariffs primarily because of its large footprint in Canada and Mexico, which represented a sizable percentage of the 1.2 million vehicles sold in the US last year. While exemptions partially apply for certain content produced in the US, final assembly will still be subject to significant tariffs. The tariff also applies to vehicle imports from Europe, which covers some premium brands by Stellantis, including Alfa Romeo, Maserati and Dodge.
The unexpected announcement of a 25 per cent tariff on assembled vehicles and parts that took effect on April 3, 2025, startled automakers around the world. According to US Census data, imports of automotive components alone were USD 138.5 billion in 2024 and were included in this tariff as well.
Revenue and production falter amid trade and supply shocks
In its H1 financial results, Stellantis announced its €2.3 billion (USD 2.5 billion) net loss as a result of a 23 per cent drop in North American deliveries. Net sales were down 26 per cent to €28.2 billion; Stellantis had an adjusted operating loss of €951 million (USD 1.04 billion), down from a €4.3 billion (USD 4.88 billion) income last year.
Stellantis' global delivery points were down, including in Europe, the Middle East, and Africa (EMEA). Its Enlarged Europe region, which used to be the biggest contributor to sales, was barely above break-even. But in South America, Stellantis had a 20 per cent rise in shipments, and adjusted income was up 3 per cent to €1.2 billion (USD 1.414 billion).
Filosa’s strategic challenge: Restore profitability
CEO Antonio Filosa, appointed amid leadership shifts, acknowledged the deep structural challenges. “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,” Filosa said.
He reinstated guidance for the rest of 2025, projecting low single-digit adjusted operating margins and improved industrial free cash flow.
Edmunds estimates, market share at risk
Edmunds analysts forecast a drop of 12.8 per cent in US sales for Stellantis - just over 300,000 vehicles - a clear indication of one of the automaker's pricing power erosion. As tariffs drive inflationary pressures upward and competition intensifies, Stellantis will have to work diligently to maintain its place in the market and maintain installation demand in an ever-changing automotive landscape.
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