MILAN (AP) — Stellantis has forecast that U.S. tariffs would cost it 1.5 billion euros ($1.7 billion) this year, five times the hit taken in the first six months of the year when the carmaker tallied losses of 2.3 billion euros ($2.65 billion).
The maker of Jeep, Chrysler, Fiat and Peugeot cars said Tuesday that net profits plummeted from 5.6 billion euros ($6.5 billion) in the same period last year as it burned 3.3 billion euros ($3.8 billion) in cash for the cancellation of a hydrogen fuel cell project, changes in the fine regime for U.S. carbon emission regulations, and write-downs on platform investments.
U.S. President Donald Trump’s tariffs cost the company 300 million euros ($346 million) in the first six months of the year, Stellantis said. During the period, U.S. shipments were down by nearly a quarter as the carmaker reduced the importation vehicles produced abroad.
Stellantis said it expected net revenues to increase over the next six months compared with the first half, when they dropped 13% to 74.3 billion euros ($85.7 billion). The carmaker also said cash flow would improve.
Incoming CEO Antonio Filosa, who was confirmed in the role last month, said the new executive team “will continue to make the tough decisions needed to re-establish profitable growth and significantly improve results.’’
“My first weeks as CEO have reconfirmed my strong conviction that we will fix what’s wrong with Stellantis,’’ Filosa said in a statement.