Stellantis Suffers Huge Losses As Restructuring, Tariffs Bite

That compares to a €5.5 billion ($6.4 billion) profit for all of 2024, which itself marked a 70% drop from the previous year.

According to Reuters, the results came in below analysts’ forecasts, though many had already expected poor performance as the company continues restructuring following the departure of former CEO Carlos Tavares last year. Stellantis stopped issuing its own financial guidance on April 30, leaving analysts’ forecasts as the primary benchmark for market expectations.

Many Reasons To Blame

Stellantis, like many automakers, faces a slowdown in sales. In North America, its largest market, sales for the second quarter fell 25% year-over-year. Globally, Stellantis' sales for the quarter are off 6%, coming in at about 1.4 million units. The decline partly stems from tariffs, which Stellantis said cost the company about €300 million ($350 million), due to reduced imports and production cuts initiated last year to curb excess inventory.

Reuters reports Stellantis sold around 1.2 million vehicles in the US last year, with 40% of those imported, mainly from Canada and Mexico. However, the automaker is attempting to make changes to curtail this, like moving some pickup production from Mexico to the US.

Also weighing on the bottom line were €3.3 billion ($3.8 billion) in charges related to canceled programs, including a hydrogen fuel cell project. Part of the charges also covered funds set aside for fines incurred before the Trump administration loosened carbon emissions regulations.

Major Restructuring Underway

Tariffs have thrown a spanner in the works of Stellantis’ ongoing restructuring, which has been underway since 2024. Already contending with slumping North American sales, the automaker has been forced to scale back or delay several investment projects. It has cut jobs, sold off its Arizona proving ground, and idled the Belvidere assembly plant in Illinois – though that site is now expected to start producing a Ram midsize pickup around 2027. In March, Stellantis also shuttered a van plant in the UK.

The tariffs only compound a separate and increasingly urgent problem: much slower electric vehicle adoption than Stellantis had anticipated. The automaker had publicly committed to turning Alfa Romeo, Fiat, and even Maserati into fully electric brands. But weak consumer demand has forced a retreat from those plans. Stellantis is now developing new internal-combustion engine models for those brands to hedge its bets – an expensive pivot that runs counter to the cost-cutting measures elsewhere in the business.

All of this now falls into the hands of Antonio Filosa, who stepped in as CEO in June 2025. He previously served as Stellantis’ Chief Operating Officer for North America and Chief Quality Officer, giving him deep familiarity with the challenges ahead. Filosa isn't the only new executive steering a struggling ship, as Japanese rival Nissan is also deep in restructuring under newly appointed CEO Ivan Eponsa, who faces a similarly complex recovery.