Maker of Jeep and Ram vehicles Stellantis reports $2.7B loss, including $1.7B in expenses from tariffs

Stellantis, the maker of Jeep and Ram vehicles, reported a $2.68 billion net loss in the first half of the year Tuesday, as some Long Island auto dealers say company decisions have resulted in low supply of vehicles locally in recent years. 

The automaker said Tuesday that net profits plummeted from $6.5 billion in the same period last year as it burned $3.8 billion in cash for the cancellation of a hydrogen fuel cell project, changes in the fine schedule for U.S. carbon emission regulations and write-downs on platform investments. Automakers have been penalized if the average fuel economy of their annual fleet of vehicle production exceeds a certain level.

Financial results reported Tuesday showed that U.S.-imposed tariffs would cost the company $1.7 billion this year, five times the $365 million in tariff-induced costs the company preliminarily reported last week. 

"2025 is turning out to be a tough year, but also one of gradual improvement," Antonio Filosa, CEO of Stellantis, said in a company statement issued Tuesday with the company's financial results. "Our new leadership team, while realistic about the challenges, will continue making the tough decisions needed to reestablish profitable growth and significantly improved results."

The automaker suspended financial guidance in April due to President Donald Trump’s tariffs. It also halted production at plants in Canada and Mexico in response to a 25% tax on imported cars, and temporarily laid off 900 workers at plants in Michigan and Indiana.

Bob Kravetz, sales manager at Huntington Jeep Chrysler Dodge Ram said his dealership has seen issues related to the availability of vehicles, an issue with Stellantis that predates news of the automaker’s recent financial troubles.

Kravetz said his dealership previously offered between 15 to 17 different models, but over the last three to four years, the availability of cars has fallen dramatically.

Over the last two years, Kravetz said company decisions, such as prioritizing the stocking of hybrid vehicles over gas vehicles, and the dropping of its use of the Hemi V-8 in its Ram trucks only to later reverse that decision, have created a challenge for dealers.

Still, he remains "optimistic" that changes in leadership at Stellantis will yield good results for dealers and consumers.

Filosa took over as CEO of Netherlands-based Stellantis two months ago after Carlos Tavares resigned under pressure last year.

Stellantis, the world’s fourth-largest car manufacturer, has largely blamed the impact of U.S. tariffs on automakers for its recent challenges. 

Trump signed executive orders in April to relax some of his 25% tariffs on automobiles and auto parts.

Automakers and independent analyses have indicated the tariffs could raise prices, reduce sales and make U.S. production less competitive worldwide.

The Center for Automotive Research said that a uniform 25% tariff on all trading partners would have an increased cost of $107.7 billion to all U.S. automakers.

Tim Spadaro, administrator of Facebook group Long Island Jeeps & Java, a Jeep enthusiast group that meets monthly at coffee shops, said mild increases in costs for parts have been overshadowed by the increasingly high cost of vehicles. He blamed a mixture of tariffs and the 2021 merger of Fiat Chrysler and PSA Group.

"Many of the quality parts that are aftermarket for Jeep vehicles that are used for off-road use are made in America," Spadaro said. "So while the price of everything always goes up year after year no matter what, it was not an exponential spike that we've been seeing like with the actual Jeep brand vehicles in dealerships."

Spadaro said labor costs on car repairs have grown sharply.

"What was once an $80 or $100 per hour labor cost, has turned into upward of nearly $200 or more for an hourly rate," he said. 

Higher costs for Jeeps, however, have yet to cause any significant impacts to communities built by a mutual love for the vehicle, he said. New people consistently show up at meetups hosted by Spadaro's group around the Island. 

Increasing living costs have limited some Jeep enthusiasts from traveling or off-roading, said Spadaro, who used to travel out-of-state to go off-roading, sometimes monthly. 

"I haven't really done that even in the last three to six months, only because cost-of-living is constantly increasing on the Island," he said. "Tax prices are increasing, now the tariff prices are affecting everything too. Even just to get off the Island now, you're talking anywhere from 25 to 40 bucks" for tolls. 

With AP