Stellantis Seeks Recovery After Tough Choices and $1.7B Tariff Blow

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On July 29, the global automotive company Stellantis issued a fresh announcement revealing substantial losses in the first half of this year, even though it has restored its financial forecast for 2025. The firm behind brands such as Chrysler, Dodge, Jeep, and Ram Trucks recorded a net loss of €2.3 billion ($2.7 billion) for the initial six months of 2025, with total revenue declining by 13% when measured against the corresponding timeframe in 2024.

Significantly, Stellantis experienced a decline in vehicle shipments across several major markets throughout this timeframe. Vehicle shipments in North America fell by 23%, impacted by tariff-related challenges affecting inventory levels. Concurrently, European vehicle deliveries declined by 7% because of a delayed launch of essential new B-segment models, with figures in China, India, and the Asia-Pacific area also showing negative trends. Although certain declines were offset by a 20% rise in sales within South America and a 5% growth in the Middle East and Africa regions, overall global vehicle shipments reached 2.69 million units—a decrease of 8% compared to the previous year.

In a press release, Stellantis Chief Executive Officer Antonio Filosa shared that his initial weeks in the role have reinforced his firm belief that he and his team can "correct the issues within Stellantis by leveraging all the positive aspects of the company," emphasizing that its workforce, innovative concepts, and upcoming vehicles represent significant strengths. Nonetheless, he cautions that the path ahead won’t be simple, as challenges lie ahead.

In 2025, the situation has proven challenging yet marked by slow advancements. Indicators of development can be observed when contrasting the first half of 2025 with the second half of 2024, as seen through higher quantities, net sales, and operating income, even amid growing outside difficulties," he stated. "Our newly appointed management group, although aware of the obstacles, remains committed to taking necessary difficult choices to restore sustainable profit growth and achieve much better outcomes."

Filosa continues to believe in Stellantis's recovery Filosa maintains faith in Stellantis's resurgence Filosa still has confidence in Stellantis's comeback Filosa stays optimistic about Stellantis's revival Filosa holds onto hope for Stellantis's return to form

Although the figures on the documents were displayed in vivid red, Filosa remained confident as financial industry experts questioned him during the Q&A portion of the live webcast and conference call held 90 minutes prior to the opening of trading on Wall Street on July 29. When asked by Stephen Reitman, an analyst from Bernstein Automotive, about the level of trust U.S. dealers have placed in him following his appointment, the new CEO mentioned that he and his team had established "a more effective communication with our dealership network, particularly within the U.S.," highlighting models such as the Ram 1500 Express as evidence of this improvement.

[The Ram 1500 Express] emerged as a result of productive discussions between the network and the Brand, and it is helping us regain our position there, with positive orders starting to come in," said Filosa during his conversation with the Bernstein analysts. "Our order list is primarily influenced by individual customers. Our dealership network has expanded by over 90% in this region. This clearly shows that trust, which is built gradually every day through connections, along with solid business practices.

Furthermore, when asked by José M. Asumendi, head of J.P. Morgan Global Autos and European Autos Equity Research, about enhancing Stellantis's growth in the U.S., Filosa attributed the success to the newly passed Republican tax and budget legislation, which created new possibilities for expanding their product range and focusing on higher-margin vehicles.

The large, impressive law enacted on Independence Day, which was recently approved by President Trump, allows us greater freedom in selecting an improved margin-focused combination of the ICE versions and electric variants of our vehicles. This will result in significant extra profits for us as well as sales figures that align more closely with what customers ultimately want.

Final thoughts

It’s expected that a car manufacturer importing cars from European Union countries such as Italy and Poland, along with Mexico and Canada, would experience significant effects on its profits due to tariffs.

Nevertheless, Filosa's restructuring efforts at Stellantis have not yet had their full effect on the marketplace. Within just a few months, we've witnessed the reintroduction of the Hemi V8 engine in the RAM 1500, the revival of the legendary SRT brand, and the reemergence of key figures such as Tim Kuniskis into important roles. Filosa understands that maintaining profitability for Stellantis is not something that occurs quickly or within a couple of reporting periods. Hopefully, Filosa will deliver tangible outcomes.