Amsterdam: Dutch-based automaker Stellantis announced on Monday that it anticipates a net loss of £2.3 billion ($2.68 billion) for the first half of the year. This expectation is attributed to significant pre-tax charges and the early effects of US tariffs.

According to Anadolu Agency, Stellantis, which owns brands such as Jeep, Dodge, Fiat, Chrysler, and Peugeot, disclosed in its preliminary financial results that first-half revenue is estimated at £74.3 billion. This marks a decline from £85 billion in the same period last year. The company identified four main factors influencing the results: initial steps to enhance profitability, nearly £3.3 billion in pre-tax net charges, higher manufacturing costs, foreign exchange fluctuations, and the early impact of US tariffs introduced this year.

Stellantis reported that the net tariffs reduced its earnings by £300 million and anticipated planned production losses as part of its response strategy. The company's global shipments in the second quarter decreased by 6% year-on-year, totaling approximately 1.4 million vehicles.

In North America, second-quarter shipments decreased by around 109,000 units, representing a 25% annual decline. This was driven by reduced manufacturing and shipments of imported vehicles most affected by tariffs, along with lower fleet sales. In Europe, shipments for the first half fell by 50,000 units, or 6%, primarily due to 'product transition factors,' as noted by the company.

The United States imposed a 25% tariff on all automobile imports in April, creating uncertainty and pressure for global automakers operating in the American market.