U.S. tariffs to cost Stellantis a substantial 1.7 billion dollars in 2023
Stellantis Faces Significant Losses Due to U.S. Tariffs and Other Factors
In a recent statement, Stellantis' new CEO, Antonio Filosa, addressed the challenges the automaker is currently facing. The company burned 3.3 billion euros ($3.8 billion) in cash in the first half of 2021, primarily due to the cancellation of a hydrogen fuel cell project, changes in U.S. carbon emission regulations, and write-downs on platform investments.
The U.S. imposed 25% tariffs on imported vehicles and parts, which increased costs directly. Production adjustments, including suspending plants in Canada and Mexico, to manage tariffs led to production losses. Costs incurred from strategic responses, including restructuring and cancellation of programs, also contributed to the losses. Emission standard compliance and fuel economy penalties added to the financial burdens.
These factors have resulted in a projected $1.7 billion loss in 2025 specifically due to U.S. tariffs, with about $347 million already spent in the first half of the year. U.S. tariffs have forced Stellantis to suspend production at plants in Canada and Mexico and temporarily lay off 900 workers in the U.S.
Stellantis' losses highlight broader industry challenges faced by global automakers under shifting U.S. trade policies. The company, being more exposed due to its import-heavy manufacturing footprint outside the U.S., reported a $2.6 to $2.7 billion net loss in the first half of 2021, driven primarily by these tariffs alongside other significant expenses.
Despite these challenges, Antonio Filosa expressed his confidence in fixing the issues at Stellantis. The new executive team under his leadership aims to re-establish profitable growth and significantly improve Stellantis' results. In the coming six months, Stellantis expects net revenues to increase compared to the first half, which dropped by 13% to 74.3 billion euros ($85.7 billion). The company also forecasts an improvement in cash flow in the next six months.
Stellantis, the maker of Jeep, Chrysler, Fiat, and Peugeot cars, faces a tough road ahead. However, with Antonio Filosa at the helm, the company is poised to make the necessary decisions to re-establish profitable growth and significantly improve its results.
| Aspect | Details | |------------------------------|---------------------------------------------------------| | Projected tariff loss (2025) | $1.7 billion (total), $347 million spent H1 2025 | | Total H1 2021 loss | $2.6–$2.7 billion (tariffs + other charges) | | Key drivers | 25% import tariffs, production halts, restructuring, emission penalties | | Operational impact | Plant closures in Canada/Mexico, layoffs in U.S. |
The projected losses for Stellantis in 2025, due to U.S. tariffs, is estimated to reach $1.7 billion, with $347 million already spent in the first half of the year. This significantly contributed to their total H1 2021 loss of $2.6 to $2.7 billion, which was also influenced by other significant expenses. U.S. tariffs forced the company to suspend production at plants in Canada and Mexico, resulting in temporary layoffs of 900 workers in the U.S. These factors emphasize the broader challenges faced by the automotive industry under shifting U.S. trade policies, especially for companies with import-heavy manufacturing footprints outside the U.S.
