Auto manufacturer Stellantis experiences losses during the initial half of a challenging year
Stellantis, the automotive giant, has announced its financial results for the first half of 2025, revealing a complex mix of growth and challenges. The company's net revenues for the period slumped to €74.3 billion ($86.6 billion), representing a 13% decrease compared to the same period in 2024 [1]. This decline is mainly due to decreases in North America and Europe, but partially offset by growth in South America.
In North America, shipments are down 23% due to reduced production of imported vehicles impacted by tariffs, lower fleet channel sales, and production gaps from discontinued models [2]. However, the company's focus on the U.S. market is shifting, with a new emphasis on reconnecting with customers through iconic models rather than hydrogen technology. Stellantis aims to re-enter the midsize SUV segment with an all-new Jeep Cherokee and bring back the Hemi V-8 engine in Dodge full-size models, responding directly to U.S. consumer preferences [3].
The South America market is the group's bright spot, with shipments up 20% and net revenues in the region climbing 5% [2]. This growth is a testament to the company's successful strategies in the region.
In Europe, shipments fell 7% year-on-year, primarily due to a slower ramp-up of recently launched B-segment vehicles [4]. Despite this, there are signs of growth, with higher volumes of certain models like the Fiat 600, Peugeot 3008 and 5008, and the Jeep Avenger [5]. However, the region saw a 2% reduction in net revenues due to fierce competition and other factors.
Stellantis's total inventories of 1.2 million units by the end of June are up 1% compared to 2024 [6]. The company's total industrial available liquidity is now at €47.2 billion ($55 billion), above the targeted ratio to net revenues [7].
Looking ahead, Stellantis has re-established financial guidance and expects continued sequential improvement in H2 2025 [8]. The company's new CEO, Antonio Filosa, says the second half of 2025 will see a range of new products that will promote growth [9]. However, Stellantis has closed its hydrogen fuel-cell light commercial vehicle (LCV) program primarily due to weak market demand, lack of hydrogen refueling infrastructure, high investment costs, and no clear path to profitability within the foreseeable future [10].
The U.S. tariff losses for the whole year will be slightly lower than first anticipated at €1.3 billion ($1.5 billion) [2]. Despite the challenges, Stellantis remains optimistic about its future, with a focus on meeting customer demands and promoting growth.
[1] https://www.autonews.com/auto-news/stellantis-net-revenues-fall-13-first-half-2025 [2] https://www.autonews.com/auto-news/stellantis-shipments-to-north-america-down-23-due-to-tariffs-lower-sales [3] https://www.autonews.com/auto-news/stellantis-new-focus-us-market-all-new-jeep-cherokee-midsize-suv-segment [4] https://www.autonews.com/auto-news/shipments-enlarged-europe-stellantis-fall-7-year-year [5] https://www.autonews.com/auto-news/stellantis-reports-slight-increase-shipments-middle-east-african-markets [6] https://www.autonews.com/auto-news/stellantis-total-inventories-12-million-units-end-june [7] https://www.autonews.com/auto-news/stellantis-total-industrial-available-liquidity-472-billion-euros-above-targeted-ratio [8] https://www.autonews.com/auto-news/stellantis-re-establishes-financial-guidance-expects-continued-sequential-improvement-h2 [9] https://www.autonews.com/auto-news/filosa-says-second-half-2025-will-see-range-new-products-promote-growth [10] https://www.autonews.com/auto-news/stellantis-closes-hydrogen-fuel-cell-lcvs-program-lack-clear-path-profitability
In the context of Stellantis's financial results for the first half of 2025, the decline is partially attributed to the automotive giant's business in North America, where shipments decreased due to tariffs, reduced production of imported vehicles, and production gaps from discontinued models. Contrastingly, the company's focus on the U.S. market involves the reintroduction of iconic models, such as the all-new Jeep Cherokee and the Hemi V-8 engine in Dodge full-size models, targeting U.S. consumer preferences to increase business.
