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Global Automakers Revise 2025 Outlook After Tariff-Driven Profit Slumps

Tumbling second-quarter profits from 25 percent U.S. tariffs on imports have forced major carmakers to recalibrate their 2025 forecasts.

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Porsche electric car is displayed at the Everything Electric, the Home Energy & Electric Vehicle Show, in London, Britain, April 16, 2025. REUTERS/Maja Smiejkowska/File Photo
Ford Mustangs are seen on display at the Canadian International AutoShow in Toronto, Ontario, Canada February 13, 2025.  REUTERS/Carlos Osorio/File Photo

Overview

  • Stellantis confirmed a €2.3 billion H1 net loss and forecast a €1.5 billion hit from U.S. tariffs for 2025, reinstating guidance for a second-half recovery with low-single-digit operating margins.
  • CEO Antonio Filosa has cut €2 billion of underperforming programs, including hydrogen fuel cell projects, to drive improved cash flow and profitability.
  • Ford took an $800 million tariff charge in Q2 and raised its annual tariff estimate to $3 billion, prompting a reduction of full-year adjusted EBIT guidance to $6.5–7.5 billion.
  • Mercedes-Benz saw Q2 profit drop nearly 70 percent to €957 million due to U.S. duties and soft China demand, and now projects full-year revenue significantly below last year.
  • Porsche said tariff expenses shaved €400 million from first-half EBIT and cut its 2025 return on sales target to 5–7 percent from 14.1 percent.