Stellantis, the automaker that holds brands such as Chrysler, Jeep, and Ram, reported a net loss of 2.3 billion euros (3.7 trillion won) for the first half of the year due to tariff shocks, it said on the 21st (local time).
Stellantis explained that there was a significant discrepancy between market expectations and the company's actual performance, which is why it unusually disclosed preliminary performance information before the completion of the audit. Earlier, Stellantis had withdrawn its performance guidance in April due to tariff uncertainties.
The administration of former President Donald Trump has imposed a 25% tariff on imported automobiles since April. Starting in May, a 25% tariff is applied to imported automotive parts as well.
Stellantis identified the background of its poor performance as including initial measures taken to improve profitability, a pre-tax net expense of 3.3 billion euros, operating profit impacts due to rising industrial expenses, currency fluctuations, and the initial effects of U.S. tariffs.
Stellantis noted that production losses caused by tariff burdens and responses to tariffs will reduce its net income by 300 million euros (about 480 billion won) during the first half of the year.
Doug Ostermann, Chief Financial Officer (CFO) of Stellantis, projected that the impact of tariffs on performance could increase to an annual level of 1 billion to 1.5 billion euros (1.6 trillion to 2.4 trillion won).