Stellantis Announces Loss Of IDR 43.7 Trillion From The Impact Of US Tariffs And Restructuring

JAKARTA - Global automotive giant Stellantis, owner of iconic brands such as Fiat, Alfa Romeo, Maserati, Peugeot, Chrysler, and Jeep, announced this Monday that they expect a loss of 2.3 billion euros (equivalent to IDR 43.7 trillion) in the first half of this year.

This surprising figure, which is far inversely proportional to the net profit of 5.6 billion euros in the same period last year, is a signal of a stern warning to the company and a crucial test for its new CEO, Antonio Filosa, who took office in May.

Reuters reported on Monday, July 21, this drastic decline was largely due to a massive restructuring storm and the initial impact of the US import rate imposed by President Donald Trump. Stellantis estimates that the tariff has cost the company 300 million euros, due to a decline in shipments and production cuts to adapt to new trade duties.

The impact of US tariffs is evident in the significant decline in shipments in North America, which fell 25 percent year-on-year in the second quarter. Stellantis' move to reduce vehicle imports in response to tariffs, which previously reached more than 40 percent of the 1.2 million vehicles sold in the US last year (largely from Mexico and Canada), is now starting to show its effect on production and labor lines.

In addition to tariffs, Stellantis also recorded a net pre-taxload of 3.3 billion euros in the first half. This figure includes program cancellation costs, including the development of hydrogen propulsion that was recently suspended, as well as changes to manufacturing platforms to meet demand for hybrid vehicles. Adjustments to emissions regulations in the United States, particularly CAFE (Corporate Average) standards announced in June, also contributed to this loss.

JPMorgan analysts note that these results reflect the early stages of action taken to improve performance and profitability, with new products expected to provide greater benefits in the second half of 2025. Expectations are now perched on Filosa strategies and the launch of new products to get Stellantis out of this financial storm.