Home / Business and Economy / Stellantis Rebounds After $1.7B Tariff Hit, Sees Profit Surge in 2022
Stellantis Rebounds After $1.7B Tariff Hit, Sees Profit Surge in 2022
29 Jul
Summary
- Stellantis reports 2.3-billion-euro net loss in H1 2022 due to slumping North America sales
- New CEO Antonio Filosa shakes up management, cuts underperforming programs
- Stellantis expects revenue and profit margin increase in H2 2022 despite $1.7B tariff impact
In the first half of 2022, automaker Stellantis, which owns brands like Jeep, Peugeot, and Fiat, reported a 2.3-billion-euro net loss as sales in North America continued to slump. However, the company's new chief executive, Antonio Filosa, who took over in June, says Stellantis is now seeing "gradual improvement" in sales volumes and revenues.
Stellantis had previously suspended financial guidance due to uncertainty around US tariffs and regulatory changes, but it now expects an increase in revenues and operating profit margin in the low single digits in the second half of the year. This turnaround comes despite a 1.5-billion-euro hit from US tariffs that Stellantis expects by 2025, with 300 million euros of that impact already incurred in the first half of 2022.
To drive the company's recovery, Filosa has shaken up Stellantis's management team and moved quickly to cut 2 billion euros in programs considered to have poor profit prospects, such as hydrogen fuel cell vehicles. The automaker is also planning a "product wave" of 10 new models this year to support future performance.
