Stellantis CEO targets US turnaround as carmaker faces $1.7 billion hit from tariffs this year

Key Points

• Stellantis forecasts a $1.7 billion impact from U.S. tariffs this year, significantly higher than the $346 million lost in the first half of the year.
• The carmaker reported a drop in net profits to €5.6 billion in the same period last year, attributed to the cancellation of a hydrogen fuel cell project and changes in U.S. carbon emissions regulations.
• U.S. shipments fell by almost a quarter as Stellantis reduced vehicle imports from abroad during the initial months of the year.
• Incoming CEO Antonio Filosa emphasized the company's commitment to making necessary changes to restore profitable growth and improve financial results.

MILAN (AP) — Stellantis hopes to counteract some of the expected 1.5 billion-euro ($1.7 billion) cost of tariffs this year by boosting North American profitability with new model launches like the discontinued Jeep Cherokee, the carmaker’s new CEO said on Tuesday.

The world’s fourth-largest carmaker, created 4½ years ago from the merger of Fiat Chrysler and PSA Peugeot, is in talks with U.S. officials on how to mitigate the impact of tariffs, in particular on cars produced in neighboring Canada and Mexico.

CEO Antonio Filosa said that Stellantis supports U.S. President Donald Trump’s strategy to boost the creation of jobs and U.S. auto production “using also tariffs as a tool,’’ Filosa said.

Filosa, who was confirmed as chief executive last month, said that he's pushing to have the tariff regime factor in the high level of U.S. components used in its cars made in Canada and Mexico.

Of the 16 million cars Stellantis produces for sale in the U.S. market, 8 million are made in domestic plants, and another 4 million in Canada and Mexico — all with a large number of U.S. components. Another 4 million are imported from Europe and Asia, with virtually no U.S. components.

In pursuit of a U.S. turnaround, Filosa is relaunching in the second half of 2025 models that previous management nixed two years ago: a new Jeep Cherokee for the largest-selling U.S. segment and the popular ICE Dodge Charger.

Earlier this year, Stellantis also relaunched the Ram Hemi V8 because of dealer and customer demand in what Filosa called “a quick, smart, impactful corrective action.”

The Jeep Cherokee will be produced in Mexico, and Filosa said that they are working on reducing production costs, “so we can totally offset the tariffs effect.’’

Stellantis has already absorbed 300 million euros ($350 million) of the 2025 tariff impact during the first half of the year, as the carmaker posted losses of 2.3 billion euros (nearly $2.7 billion). During the period, U.S. shipments were down by nearly a quarter as the carmaker reduced the importation vehicles produced abroad.

The maker of Jeep, Chrysler, Fiat and Peugeot cars reported that net profits plummeted from 5.6 billion euros ($6.5 billion) in the same period last year as it burned through 3.3 billion euros 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.

Stellantis said that 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 that cash flow would improve.

Filosa said the new executive team “will continue to make the tough decisions needed to reestablish profitable growth and significantly improve results."