Net Revenue Also Down 12.6% Year-on-Year
Automaker Stellantis, which owns brands such as Chrysler, Jeep, and Ram, expects a net loss of 2.3 billion euros (approximately 3.7 trillion won) in the first half of this year due to rising costs and the impact of tariffs.
According to CNBC, a U.S. business media outlet, on the 21st (local time), Stellantis reported first-half net revenue of 74.3 billion euros (about 120.3 trillion won), a decrease of 12.6% compared to 85 billion euros (about 137.7 trillion won) in the same period last year.
The company explained that it unusually disclosed preliminary, unaudited results due to the widening gap between market experts' earnings forecasts and its actual performance. After Stellantis withdrew its earnings guidance at the end of April, citing tariff uncertainties, Wall Street analysts' estimates became the new benchmark.
The company identified several factors behind the poor performance, including initial measures taken to improve profitability, 3.3 billion euros in pre-tax net costs, the impact on operating profit from rising industrial costs, foreign exchange fluctuations, and the initial effects of U.S. tariffs. In particular, the company said that production losses incurred in response to tariff burdens and countermeasures are expected to result in a net profit reduction of 300 million euros (about 480 billion won) in the first half.
Doug Ostermann, Stellantis Chief Financial Officer (CFO), said during a conference call that the annual impact of tariffs could increase to between 1 billion and 1.5 billion euros (about 1.6 trillion to 2.4 trillion won). The Donald Trump administration in the United States has imposed a 25% tariff on imported vehicles since April. Starting in May, a 25% tariff has also been applied to imported auto parts.
The global vehicle shipments for the second quarter of this year (April to June) were provisionally tallied at 1.4 million units, a 6% decrease compared to the same period last year. The company stated, "This reflects the effects of production stoppages in North America due to tariffs, as well as the transition to new vehicles in Europe," adding, "In Europe, major models are either in the initial stages of production following recent launches or are set to begin production in the second half of the year."
Meanwhile, Stellantis is scheduled to announce its first-half 2025 results as planned on the 29th.
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