Editor's note: This article was originally published in Automotive Dive, which has merged with WardsAuto to bring you expanded coverage of the industry. For the latest news, sign up for our free, daily newsletter.
Stellantis on Tuesday announced its first half 2025 revenues fell 13% compared to the same period last year, resulting in an operating loss of 2.3 billion euros ($2.68 billion), but says U.S. tariff losses for the whole year will be slightly lower than first anticipated at 1.3 billion euros ($1.5 billion).
The automaker says net revenues for the half fell to 74.3 billion euros ($86.6 billion), which it blamed mainly on declines in North America and Europe, but were partially offset by growth in South America.
The company’s loss for the January-June period was a significant swing into the red compared to an H1 2024 net profit of 5.6 billion euros ($6.53 billion).
A closer look at individual markets revealed shipments to North America fell 23%, mainly because of reduced production of imported vehicles most impacted by tariffs, lower fleet channel sales and production gaps resulting from discontinued models, driving a net revenue reduction of 26%.
Shipments in Europe for Stellantis fell 7% year-on-year, mainly owing to the slower ramp-up of recently launched B-segment vehicles, although partially offset by higher volumes of Fiat 600, Peugeot 3008 and 5008 models, as well as the Jeep Avenger. However, for the region there was a 2% reduction in net revenues.
The South America market was the group’s bright spot, recording shipments up 20%, driven primarily by increased volumes in Argentina, as well as increased YoY shipments of Fiat’s Strada, Fastback and Argo models, causing net revenues in the region to climb 5%.
The Middle East and African markets reported a slight increase in shipments at 5%, while China experienced fierce price wars. Stellantis blamed the latter mainly for adjusted operating income in the China, India and Asia-Pacific region falling 38% compared to the same period in 2024.
Nonetheless, Stellantis expects improvement in the second half of 2025 with total industrial available liquidity now at 47.2 billion euros ($55 billion), above targeted ratio to net revenues.
Total inventories of 1.2 million units by the end of June rose 1% compared to 2024, even as new products launched and consolidated shipments rose 5% sequentially.
The company re-established financial guidance and says it expects continued sequential improvement in H2 2025.
“(The year) 2025 has been and will be a tough year but we are making progress on our product wave,” CEO Antonio Filosa said on a call with investors. “The second half will see a range of new products that will promote growth,” he added.
Filosa says closing Stellantis’s hydrogen fuel-cell LCV program was part of the rationalization needed to drive a turnaround for the group. “We ended the commercial-vehicle hydrogen program because there was not a clear path to profitability,” he said.
Meanwhile, a new focus on the U.S. market is underway. “In the U.S., we need to reconnect with our customers with our iconic models,” Filosa said. “The all-new Jeep Cherokee will mark our re-entry into the midsize SUV segment and bringing back the ‘Hemi’ V-8 with Dodge in the fullsize sector responds to what our customers want.”
