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Trump’s Auto Tariffs Slam Stellantis With $1.7bn Loss, Pushing Carmaker Deep Into Crisis

Trump's car rates slam stellantis with a loss of $ 1.7 billion, pushing the car manufacturer deeply in crisis

Stellantis faces an overwhelming financial blow this year, because the American import prices under President Donald Trump should cost the automaker 1.5 billion euros ($ 1.7 billion) – five times what he lost in the first half of 2025 due to these samples.

Jeep manufacturer, Chrysler, Fiat and Peugeot said on Tuesday that he had a net loss of 2.3 billion euros (2.65 billion dollars) in the first six months of the year, an amazing reversal compared to 5.6 billion euros ($ 6.5 billion) recorded in the same period last year.

The income also dropped sharply, plunging from 13% to 74.3 billion euros ($ 85.7 billion) because the American vehicle shipments have dropped by almost a quarter. This drop followed the company’s decision to considerably reduce imports to the United States to protect itself from car prices of 25% of Trump, which now target a wide range of vehicles made abroad.

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Losses related to prices amounted to 300 million euros ($ 346 million) during the first six months of 2025, and Stellantis now projects that annual damage will reach 1.5 billion euros. The company clearly indicated that this level of financial exhibition was not durable, even if it rushes to adapt.

The blow occurs while Stellantis affirms with a multitude of internal setbacks. It burned 3.3 billion euros ($ 3.8 billion) in cash, driven by the steep cancellation of a hydrogen fuel cell project, the compliance costs resulting from a revised American carbon carbon penalty penalty system, and significant writing entries in previous platform investments, many of which are abandoned as Restructuring of society.

The new CEO of the company, Antonio Filosa, who took over in June, directs the turnaround. In a statement on Tuesday, he recognized the depth of the crisis but insisted that the company always had strength and discipline to correct the course.

“My first weeks as CEO, I reconfirmed my strong conviction to resolve what is wrong with Stellantis,” said Filosa. “The new management team will continue to make the difficult decisions necessary to restore profitable growth and considerably improve the results.”

Filosa inherits a company which, even before the prices, was under pressure to simplify its global operations and reduce dependence on low -margin models. However, the new pricing burden – in the middle of Trump’s broader protectionist push – has dramatically increased the issues. The traditional stellantis force in North America has now been seriously undermined, revenues in the region more than 25%. For the first time in years, its European operations have generated more income than its American activities.

Despite the troubles, Stellantis has re -entered a forecast of the full year, saying that it expects the income and cash flow to improve during the second half. The management now aims to return to the positive cash generation and on the margins of low -digit operating profit by the end of the year.

However, the road to come is far from smooth. Trump’s tariff climbing has forced car manufacturers around the world to rethink their American strategies, but Stellantis seems to be among the hardest. Its global footprint, formerly an advantage, now exposes it to the highest costs in an increasingly inclined market towards domestic production.

This means that 2025 turns out to be a year of calculation – not fair financially, but structurally for Stellantis. The company is forced to dismantle parties of its longtime strategy while absorbing a blow of several billion euros in the process. And unless the commercial environment is changing, even the most difficult internal decisions may not be sufficient to protect it from new losses.

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