Stellantis Plans to Overcome Financial Difficulties Through New Decisions

• Stellantis forecasts losses of 1.5 billion euros due to US tariffs
• The company's net income decreased to 2.3 billion euros
• The new CEO promises to make tough decisions to improve the situation

This is reported by ABC News, Autocar.

MILAN -- Stellantis predicts that US tariffs will cost it 1.5 billion euros ($1.7 billion) this year. This is five times larger than the losses that the company reported for the first six months of the year, when it recorded a loss of 2.3 billion euros ($2.65 billion).

The automaker of Jeep, Chrysler, Fiat, and Peugeot brands reported that net income decreased from 5.6 billion euros ($6.5 billion) in the same period last year, as the company spent 3.3 billion euros ($3.8 billion) on a project with hydrogen fuel elements, changes in penalty regimes for emissions in the US, and a reduction in investments in platforms.

The tariffs, imposed by the administration of former US President Donald Trump, cost the company 300 million euros ($346 million) in the first six months of this year. At the same time, supplies to the US decreased by almost a quarter, as the company reduced imports of cars manufactured abroad.

Stellantis expects net revenues to grow over the next six months compared to the first half of the year, when they fell by 13% to 74.3 billion euros ($85.7 billion). The company also noted that cash flow is expected to improve.

The new CEO, Antonio Filosa, who was confirmed in this position last month, stated that the new management team "will continue to make tough decisions, necessary for restoring net income growth and significantly improving results."

"The first weeks in the position of general director confirmed my belief that we are correcting what is not right with Stellantis," Filosa noted in his statement.

Tags: Economy/Automotive