Stellantis braces for $1.7 billion loss due to U.S. tariffs

In the United States, Stellantis anticipates facing significant financial losses due to tariffs implemented by the U.S. government. In the current fiscal year, the carmaker estimates that U.S. tariffs will amount to $1.7 billion, a stark increase compared to the $2.65 billion losses recorded in the first half of the year. This increase is attributed to various factors, including a cash outflow of €3.3 billion ($3.8 billion) linked to the cancellation of a hydrogen fuel cell project, updates in carbon emission regulations, and depreciation on investments related to the platform. Additionally, Stellantis reported a decline in shipments from the U.S. by nearly 25% during the same period, revealing a strategic decrease in imported vehicles as part of cost-cutting measures. Furthermore, the company's net profits drastically fell compared to the same period last year, plummeting from €5.6 billion ($6.5 billion) to €1.8 billion ($2.2 billion) due to these global economic pressures as well as operational challenges. Incoming CEO Antonio Filosa emphasized the need for decisive initiatives to restore profitable growth and enhance future results. In the coming months, Stellantis expresses optimism that net revenues will increase, as they predict a recovery from the 13% drop earlier observed. The focus will be on making necessary adjustments to improve their financial standing amidst ongoing challenges posed by trade tariffs and other market conditions.