Stellantis, the automotive conglomerate behind brands such as Vauxhall, Fiat, Jeep, and Peugeot, has warned of an expected €2.3 billion loss for the first half of 2025. The company attributes this forecasted downturn to the recent imposition of global trade tariffs by the US, a decrease in vehicle demand across Europe, and the termination of its hydrogen fuel programme.
This anticipated loss marks a significant reversal for the Franco-Italian-American group, which reported a €5.6 billion profit during the same period last year. In a recent earnings update, Doug Ostermann, Stellantis’s Chief Financial Officer, disclosed that the firm has faced €300 million in costs directly related to the newly implemented US trade levies. These costs were exacerbated by supply chain disruptions following the introduction of sweeping tariffs by the White House in April.
Production in North America was temporarily halted as the company sought clarity on the tariff details, resulting in a 6% global decline in shipments for the second quarter.
“We responded swiftly, but there was a near-term hit to output and sales,” Ostermann commented.
In addition to trade-related disruptions, Stellantis has recorded €3.3 billion in pre-tax charges, attributed to the termination of its hydrogen fuel cell vehicle programme, provisioning for potential fines linked to legacy CO₂ emissions non-compliance in the US, and increased investment in hybrid models for Europe and larger petrol-powered vehicles for the American market.
The cancellation of the hydrogen project signifies a notable shift from the company’s previous ambitions. In 2022, Stellantis celebrated the launch of the world’s first manufacturing plant for hydrogen-electric commercial vehicles. However, the company now cites insufficient fuelling infrastructure, high capital costs, and low consumer uptake as reasons for deeming the project unviable.
Stellantis is not alone in these challenges. Renault has also revised its full-year outlook downwards, citing disappointing sales in June and a slower-than-expected recovery in key European markets.
Stellantis’s decision to suspend its full-year financial guidance in April now appears prudent, as global uncertainty — driven by trade tensions and waning consumer demand — continues to cast a shadow over the automotive industry’s prospects.
Antonio Filosa, the new CEO who assumed the role in May following Carlos Tavares’s departure, characterised the start of 2025 as a “tough first half with increasing external headwinds.” Despite this, he remains committed to achieving “a year of gradual and sustainable improvement.”
Market responses to the update were cautious. Analysts noted that while the figures were worse than expected, the challenges facing the sector were broadly anticipated. Philippe Houchois, an automotive analyst at Jefferies, stated, “Stellantis’s figures are worse than consensus, but poor numbers were expected. The key question is how quickly the company can recover market momentum and operational consistency.”
With its core US operations under strain, declining demand for light commercial vehicles in Europe, and strategic uncertainty following the shift away from hydrogen, Stellantis is under increasing pressure to restore investor confidence and navigate a volatile global trade landscape.
The effectiveness of Stellantis’s pivot towards hybrid vehicles and its focus on high-margin models in offsetting these challenges in the second half of 2025 remains to be seen.
