Stellantis Warns Of $1.7 Billion Tariff Cost

Stellantis warned Tuesday that U.S. tariffs will cost the company $1.7 billion this year, five times the $346 million hit taken in the first half, according to AP. Net profit fell from $6.5 billion last year as the carmaker burned $3.8 billion in cash to cancel a hydrogen fuel cell project, comply with updated U.S. carbon emissions rules, and write down platform investments. U.S. shipments dropped nearly 25% as Stellantis curbed imports. Net revenue for the first half declined 13% to $85.7 billion, but the company expects revenue and cash flow to improve in the second half. New CEO Antonio Filosa said the leadership team will make difficult changes to restore profitable growth and fix performance issues.