Stellantis, the parent company of Jeep, reported a substantial 2.3-billion-euro ($2.7-billion) net loss in the initial half of the year, affected by new US tariffs and significant charges due to US legislative changes. North American sales continued to decline, with a 25 percent volume reduction in the second quarter compared to the previous year, AP repoted.The automotive group, which includes brands such as Peugeot, Citroen and Fiat, recorded a 12.6 percent decrease in first-half net revenues to 74.3 billion euros, based on preliminary and unaudited results.Vehicle sales declined by six percent in the second quarter year-on-year, following a nine percent reduction in the first quarter of 2025.The company cited a 300-million-euro negative impact from “the early effects of US tariffs”, which disrupted their North American recovery strategy, as per AP.Car manufacturers have found it challenging to adapt to the new 25 percent US tariff on imported vehicles not predominantly manufactured within North America.The organisation, which includes Chrysler, Dodge and Ram Truck brands, temporarily stopped production at certain Canadian and Mexican facilities in April when the tariffs became effective.The company attributed the significant decline in North American sales volume to reduced production and delivery of imported vehicles affected by tariffs, alongside decreased corporate fleet sales.Stellantis recorded a 3.3-billion-euro charge, primarily related to programme cancellation costs, platform impairments, CAFE penalty rate legislation impact, and restructuring.Recent legislation approved by US President Donald Trump eliminated penalties for non-compliance with CAFE fuel economy targets, allowing manufacturers to produce more high-emission vehicles in the United States.The company indicated it had begun implementing measures to enhance performance and profitability, anticipating new products to have greater impact in the latter half of 2025.Stellantis shares experienced volatility on Monday, initially dropping over two percent before recovering to rise by more than two percent.Chief financial officer Doug Ostermann explained that approximately two billion euros of the charge related to eliminating unprofitable product programmes.These charges included European redundancy costs, abandonment of a 700-million-euro hydrogen fuel cell development programme, and European vehicle recalls due to defective Takata airbags.The company withdrew its financial guidance in April due to uncertainties created by US tariffs.Ostermann highlighted the current climate of economic and regulatory uncertainty.Financial analysts at ODDO BHF noted that sales decreases were anticipated, and new chief executives often implement provisions or restructuring charges upon assuming leadership.Antonio Filosa, appointed chief executive in June, promptly initiated management changes. He previously led and maintains responsibility for the North American region, which generates most company profits and whose difficulties led to Carlos Tavares’s dismissal.While the overall six-percent sales volume reduction aligned with analyst expectations, the 25-percent decline was significantly higher than the predicted 12 percent.The company confirmed its audited first-half results would be released on July 29 as planned.
