Stellantis, the parent company of Jeep, expects to lose $2.7 billion in the first half of 2025 due to tariffs imposed by US President Donald Trump. The auto maker said that sales in North America plummeted by 25% in the second quarter, partly due to increased costs caused by the tariffs.
The 25% tariff on vehicles imported into the US went into effect on April 2 and has affected Stellantis’ operations. To mitigate the impact, the company temporarily paused production at two plants in Canada and Mexico, resulting in the layoff of 900 employees across several US facilities.
Stellantis had anticipated challenges this year due to its efforts to adjust offerings and reduce inventory. CEO Antonio Filosa emphasized the importance of improving profitability and addressing tariff-related expenses.
The auto tariffs have weighed on Stellantis’ performance, with preliminary data showing losses of nearly $350 million in direct tariff payments and a loss of planned production. The company expects these costs to affect its bottom line for the full year.
Source: https://abcnews.go.com/Business/jeep-maker-stellantis-lose-27-billion-due-partly/story?id=123921743