Stellantis Faces $1.7B Tariff Hit, New CEO Vows Comeback

Stellantis, the automaker formed from the merger of Fiat Chrysler and Peugeot, is facing a significant challenge as it warns of a $1.7 billion hit from U.S. tariffs this year. The company's new CEO, Antonio Filosa, is making his first public appearance and outlining the priorities to get the company back on track after a dismal 2024.

Filosa's main focus is to return to volume growth, which he says will involve expanding the company's lineup with new products that better meet customer demands. This includes the decision to reintroduce the popular Hemi 8-cylinder engine for Ram trucks. Stellantis is forecasting a low-single-digit margin on its adjusted operating income in the second half of 2025, following an "incredibly tough" first half.

The company is also expecting higher net revenues and improved industrial free cash flow in the second half of 2025 compared to the first half, when it burned through $3 billion in cash. Filosa, who was appointed in May after the ousting of former CEO Carlos Tavares in December 2024, is determined to take responsibility and accountability for the company's performance.