manufacturers

Stellantis Reports Meaningful Profit Drop Amidst Production Costs and Tariff Impacts

Stellantis, teh global automotive giant, has announced a significant decline in its profits, reporting 5.5 billion euros for the period, a stark 70% decrease compared to the previous year.The company’s turnover for the same period stood at 156.9 billion euros.

Several factors have been cited to explain this downturn. Stellantis has highlighted approximately 3.3 billion euros in pre-tax charges, primarily attributed to program cancellations, platform depreciation, and restructuring costs. These include the impact of recent legislation that eliminated penalties related to the European “Cafe” standard, which regulates the emissions of new vehicles. The company also pointed to the cancellation of its hydrogen program as a contributing factor.

Beyond these specific charges, Stellantis also blames increased industrial production costs, unfavorable geographic and product mix, and currency fluctuations for the hit to its current operating profit.

The international group, which had previously suspended its 2025 forecasts on April 30, 2025, also stated that new American customs tariffs have cost the company an estimated 300 million euros. In response to these tariffs, Stellantis has opted to reduce its production to mitigate further damage to its financial performance.Deliveries Decline Amidst market Share Challenges

consolidated deliveries for the first six months of the year have fallen by 7.2%, totaling 2.65 million units. This downward trend underscores Stellantis’s ongoing struggles to maintain its market share in its two primary markets: North America and Europe.

In the United States, the company reported a decrease of approximately 109,000 units in its second-quarter invoices compared to the same period in 2024, marking a 25% year-on-year decline. This reduction was attributed to various factors, including decreased manufacturing and invoicing of imported vehicles most affected by customs duties, as well as a slowdown in the fleet channel.

Struggles in Europe and France

Stellantis is anticipating that the initiatives implemented under its new leadership, headed by Antonio Filosa, will begin to show positive effects in the second half of the year. The company is also relying on new model launches to boost sales, particularly in Europe, where it experienced a decline of 50,000 invoices in the second quarter. Upcoming launches include the new Citroën C3 and C3 Aircross, the Opel Frontera, and the Fiat Grande Panda.

On the European continent, stellantis remains the second-largest manufacturer, trailing behind the German automotive giant Volkswagen. From January to May, the group’s registrations across its fourteen brands decreased by 10% to 751,897 units, resulting in a market share of 16.5%, down from 18.2% in the same period last year. in France specifically, the manufacturer of peugeot and Citroën has fallen behind its historic rival, Renault.