Stellantis Stock: Crisis Deepens with Massive Losses

Stellantis is facing a severe financial crisis as its half-year results reveal a shocking shift from last year's €5.6 billion profit to a €2.3 billion loss. The automotive giant's revenue plummeted 13% to €74.3 billion, with its operating margin collapsing to a mere 0.7%, far below market expectations. Vehicle sales declined by 7% to approximately 2.7 million units, with particularly troubling performance in North America, where revenues dropped by 26% in what was previously a profit powerhouse region. The cash flow situation appears equally dire, with the company burning through €3 billion in the first half, leading to immediate market reaction with share prices falling nearly 5%.

Trump Tariffs Compound Troubles

The automobile conglomerate now faces additional headwinds from U.S. import tariffs, expecting a total impact of €1.5 billion for the year—€300 million already incurred in the first half with an additional €1.2 billion projected for the second half. New CEO Antonio Filosa, who replaced the ousted Carlos Tavares, has attempted to provide some optimism by forecasting "sequential improvement" for the latter half of the year with margins in the "low single digits." However, analysts remain skeptical of this vague outlook, especially as the company continues struggling with structural issues across its 14 vehicle brands.

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Source StockWorld