Stellantis anticipates a €2.3 billion deficit as a consequence of tariffs and restructuring costs

In the automotive industry, Stellantis, a global automaker, has announced its first-half results for 2025, revealing a net loss of €2.3 billion. Despite the strong industry headwinds, the company's Chief Financial Officer, Doug Ostermann, expressed disappointment with the results, stating they were below Stellantis' potential.

Ostermann attributed the net loss to a variety of factors, including the early effects of US tariffs, programme cancellations, actions to improve performance and profitability, platform impairments, higher industrial costs, and changes in foreign exchange rates. One significant impact was a net expense of €300m associated with the reduction to zero of US CAFE rates due to the passing of the 'One Big Beautiful Bill'.

However, there was a sequential improvement from the second half of 2024. Ostermann reported increased volumes and revenues, an improved adjusted operating income margin, and reduced cash flow outflows by half. Specifically, the OEM's net revenues for the first half of 2025 were €74.3 billion, and the adjusted operating income was €540 million.

Vehicle inventories at the end of H1 2025 remained unchanged compared to H2 2024. There was a net increase of approximately 60,000 units in Original Equipment Manufacturer (OEM) inventories, and a decrease of around 60,000 units in dealer inventories.

Shipments were impacted in the first half due to downtime taken by Stellantis in response to tariff announcements. Ostermann expects more impact from US tariffs in the second half of 2025.

Despite the current state, Stellantis' management team is not satisfied and plans to continue progress in the second half of 2025. The full first-half results for 2025 are due to be released next week.

It is important to note that while Doug Ostermann is the CFO of Stellantis, there is no information available that directly links him to the historian and editor, Christian Ostermann, who specialises in Vietnamese history and is associated with Dartmouth College.

Some of the products impacted by the downtime were produced in Europe, Canada, and Mexico. The OEM experienced an industrial free cash flow outflow of €3 billion for the first half of 2025.

In conclusion, Stellantis' first-half results for 2025 have been challenging, but the company is optimistic about the second half of the year and plans to continue making improvements. The full results will be released next week.

Stellantis anticipates a €2.3 billion deficit as a consequence of tariffs and restructuring costs