Stellantis warns of $3.7B Cdn loss for first half of 2025 due to tariffs and some big charges

Stellantis, the maker of Jeep and Ram vehicles, says its preliminary estimates show a 2.3-billion euro (nearly $3.7-billion Cdn) net loss in the first half of the year due to U.S. tariffs and some hefty charges.

The head of Canada's Automotive Parts Manufacturers' Association (APMA) says plants like those in Windsor and Brampton, both in Ontario, can't survive that kind of storm. 

The automaker anticipates an impact of about 300 million euros (about $480 million) for net tariffs incurred, and also expects planned production losses related to implementing its response plan.

Stellantis also expects approximately 3.3 billion euros (nearly $5.3 billion) of pre-tax net charges mostly related to program cancellation costs and platform impairments, restructuring and the net impact of recent legislation eliminating the CAFE penalty rate.

Automakers have been penalized if the average fuel economy of their annual fleet of vehicle production exceeds a certain level. 

'Get the tariff removed'

The loss is a pressing reason the tariffs need to be removed, said Flavio Volpe, president of the APMA, which represents the interests of automotive original equipment suppliers.

"When I think about the tariff impact on Stellantis, I think about the Brampton assembly plant, which is idle and doesn't have any product assigned to it," he said. 

"I think about the Windsor assembly plant, that every few weeks goes down for a week. Those two plants can't survive the tariff. The company can survive the tariff. Those plants can't. That's why it's important that we get the tariff removed."

Volpe said the Brampton plant alone employs 3,000 people directly and 9,000 people through suppliers. If the tariffs continue, that plant is in serious danger.

"Stellantis can't fight the White House and the market at the same time."

Two months ago, Stellantis named Antonio Filosa as its new chief executive officer. He replaced Carlos Tavares, who resigned under pressure last year.

Stellantis, which was created from the 2021 merger of France's PSA Peugeot with Italian-U.S. carmaker Fiat Chrysler Automobiles, is the world's fourth-largest car manufacturer. It is based in the Netherlands. 

The automaker provided preliminary financial figures on Monday in the absence of financial guidance, which it suspended in April.