(MENAFN) Dutch-headquartered automaker Stellantis announced on Monday that it anticipates a net loss of €2.3 billion ($2.68 billion) for the first six months of the year.

The loss, according to the company, stems largely from substantial pre-tax expenses and the preliminary effects of newly imposed U.S. tariffs.

In its provisional financial report, Stellantis — the parent company of brands such as Jeep, Dodge, Fiat, Chrysler, and Peugeot — projected that its first-half turnover would stand at €74.3 billion.

This marks a decline compared to the €85 billion reported during the same timeframe last year.

The firm pointed to four key reasons for the downturn: early-stage efforts to enhance profit margins, an estimated €3.3 billion in pre-tax net costs, escalating production expenditures combined with currency exchange rate changes, and the initial consequences of tariff policies enacted by the United States this year.

Stellantis calculated that tariffs directly reduced its income by €300 million.

The automaker also warned of anticipated manufacturing disruptions as part of its strategic countermeasures.

The company’s worldwide deliveries in the second quarter dropped by 6% year-over-year, totaling approximately 1.4 million vehicles.

In the North American market, second-quarter shipments declined by roughly 109,000 units, equivalent to a 25% yearly reduction.

This drop was primarily due to decreased factory output and fewer shipments of imported cars most impacted by tariffs, along with a reduction in fleet transactions.

Across Europe, Stellantis noted a 6% dip in shipments for the first half — a decrease of about 50,000 units — mainly attributed to “product transition factors,” as the company described.

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