Tag Archives: Sales results

News

Stellantis Reports €2.3 Billion Loss in H1 2025 Amid Tariffs and Restructuring

Stellantis N.V. has released its preliminary and unaudited financial data for the first half of 2025, revealing a challenging period marked by heavy restructuring charges, global shipment declines, and mounting pressure from geopolitical headwinds such as U.S. tariffs. With full financial results set to be disclosed on July 29, these early figures already paint a picture of a company in transition — and under pressure.

The headline numbers speak volumes: net revenues for the first half came in at €74.3 billion, but that was overshadowed by a net loss of €2.3 billion. Adjusted operating income (AOI), a key profitability measure for Stellantis, stood at just €0.5 billion. Industrial free cash flow saw a steep negative swing, landing at -€3.0 billion — a stark reflection of mounting costs and declining volumes.

Transformation in Motion — But Not Yet Paying Off

According to the automaker, the lackluster first half was shaped largely by the “early stage of actions” aimed at improving long-term performance. Executives expect the second half of 2025 to benefit from a more robust product lineup, including new launches from the company’s “Smart Car” B-segment platform.

However, the real blow came from approximately €3.3 billion in pre-tax net charges. These were mostly related to program cancellations, platform impairments, and restructuring, as well as the impact of recently altered U.S. legislation eliminating the CAFE penalty rate. Though these are excluded from AOI calculations, they cast a long shadow over the company’s bottom line.

Further weighing on performance were higher industrial costs, unfavorable mix effects, volatile foreign exchange rates, and the early effects of new U.S. tariffs, which have already cost the company €0.3 billion in net tariffs and disrupted planned production.

Shipment Volumes Slump — Except in Emerging Markets

Globally, consolidated shipments for Q2 2025 stood at 1.4 million units, down 6% year-over-year. North America bore the brunt of this decline, with shipments dropping by 109,000 units, a steep 25% plunge compared to Q2 2024. This decline was largely driven by reduced imports hit by tariffs, as well as weaker fleet sales.

Interestingly, despite the production and shipment woes, U.S. retail sales held steady, and Stellantis’ two biggest North American brands, Jeep® and Ram, posted a combined 13% increase in year-over-year sales, signaling brand resilience amidst turbulence.

In Enlarged Europe, shipments dipped 6% year-over-year as the region contended with a transitional product phase. New B-segment “Smart Car” models — such as the Citroën C3, C3 Aircross, Opel/Vauxhall Frontera, and Fiat Grande Panda — are still ramping up production. Shipments of these models rose by 25,000 units over Q1, marking a 45% sequential increase.

Meanwhile, emerging markets provided a rare bright spot. Shipments in regions outside of North America and Europe rose by 71,000 units, a 22% year-over-year gain. Middle East & Africa surged by 30%, driven by demand in Türkiye and recovering markets like Egypt, Algeria, and Morocco. South America also posted robust growth, with a 43,000-unit increase led by strong sales in Argentina and Brazil, where Stellantis continues to hold a leadership position.

Looking Ahead: Turning the Corner?

With the company having suspended its financial guidance earlier this year, analysts have turned to consensus forecasts to assess performance expectations. This preliminary disclosure appears to be an effort to reset those expectations and provide transparency ahead of the July 29 earnings call, which will be hosted by new CEO Antonio Filosa and CFO Doug Ostermann.

Despite the grim numbers, Stellantis is signaling confidence that the worst may be behind it, banking on its upcoming products and strategic cost actions to deliver results in the back half of 2025. But for now, the road remains bumpy — and all eyes will be on the automaker’s ability to execute its comeback in a rapidly shifting global landscape.

Source: Stellantis

News

Volvo Cars Posts SEK 2.9 Billion Core Profit as Turnaround Plan Gains Momentum

Volvo Cars reported an operating result of SEK -10.0 billion for the second quarter of 2025, a figure skewed by significant one-off charges. When adjusted for those exceptional items, however, the company posted a core operating profit of SEK 2.9 billion, signaling that its SEK 18 billion turnaround plan is beginning to gain traction.

The reported loss was primarily driven by an SEK 11.4 billion non-cash impairment tied to revised financial assumptions for the EX90 and ES90 electric vehicle platforms, as well as SEK 1.4 billion in restructuring costs related to the ongoing reduction of 3,000 global positions. Without these items affecting comparability, Volvo’s underlying EBIT margin stood at 3.1%.

Retail sales fell by 12% year-over-year to 181,600 units, and revenues totaled SEK 93.5 billion. Yet despite the dip in volume, CEO Håkan Samuelsson remained upbeat:

“The market continued to be challenging in Q2,” he said. “However, our turnaround actions are starting to show results. In a market with headwinds, we made a clear improvement of free cash flow versus Q1, and our EBIT margin, excluding exceptional items, was slightly higher.”

Turning Point in Volvo’s Transformation

Earlier this year, Volvo launched a sweeping SEK 18 billion cost and cash turnaround plan, now visibly underway. The strategy revolves around three core pillars: profitability, electrification, and regionalisation.

On the profitability front, job cuts and spending reductions are already being implemented, with 1,100 employees having left the company. Efforts to slash material costs include deeper collaboration with Geely Group on procurement and co-developing models for the Chinese market. At the same time, Volvo has slowed its investment pace and reduced working capital demands to boost cash flow.

These efforts are setting the stage for sustainable future profitability, supported by advanced manufacturing techniques such as mega-casting, cell-to-body battery integration, and in-house e-motor development.

EV Acceleration: EX60 and ES90 Lead the Charge

Volvo’s future hinges on electrification, and that strategy remains intact. Development of the born-electric EX60, a key entry into the premium midsize SUV segment, is on track. It will be the first model built on Volvo’s next-gen EV platform — designed for lower cost and better performance.

The ES90 all-electric sedan will arrive this autumn, targeting premium buyers with a zero-emissions offering. Meanwhile, the EX90 — following software improvements — is now fully market-ready and manufactured to meet the high standards of Volvo’s customer base.

Recognizing the transitional role of plug-in hybrid vehicles (PHEVs), Volvo is also preparing to launch the XC70, its first extended-range PHEV, with production starting in Q3. This model is expected to perform strongly in China and other markets where charging infrastructure remains limited.

Going Regional: Adapting to a Shifting Global Landscape

With globalization under strain, Volvo is leaning into regionalisation. It is decentralizing governance, starting with its China and Americas operations, to allow faster responses to local market dynamics.

Volvo is also localizing production to mitigate tariffs and supply chain challenges. The XC60 will now be assembled in Charleston, USA, while in Europe, Volvo is building out its Kosice plant in Slovakia, which will produce the upcoming Polestar 7 and a new Volvo model yet to be revealed.

Looking Ahead: Positioned for Recovery

While macroeconomic conditions remain tough, Volvo’s proactive cost and product strategies are already showing early promise. The EX30, now made in Ghent to avoid tariff exposure, is ramping up sales, while the refreshed 90 Series and new models like the EX60, ES90, and XC70 are expected to drive growth.

“When market sentiment improves, Volvo Cars will be well-positioned for profitable growth,” said Samuelsson. “With a future-proof product line-up and a leaner, more efficient organisation, we’re confident in the path ahead.”

Despite the headline figure, the second quarter represents a turning point for Volvo Cars — a moment when restructuring pain starts giving way to operational gains. If momentum continues, 2026 may mark the beginning of a new, electric-powered chapter in the company’s storied history.

Source: Volvo

News

Toyota Motor Europe Hits Record Sales in H1 2025, Driven by Electrified Lineup

Toyota Motor Europe (TME) has bucked the trend of a shrinking automotive market in the first half of 2025, posting record-breaking sales of 635,328 vehicles between January and June — a +1% year-on-year increase — while the overall European market declined by -1.54%.

At the heart of TME’s strong performance is its continued momentum in electrification. The company’s electrified vehicle sales (encompassing hybrids, plug-in hybrids, and battery electric vehicles) surged by +6%, now making up 77% of its total sales mix. This figure is even more pronounced in Western Europe, where electrified vehicles represent 80% of TME’s sales.

“Despite various headwinds in the market, we are encouraged that consumer demand remains solid for the Toyota and Lexus range of electrified vehicles. It’s testament to our product power and broad line-up of zero and low-emission vehicles,” said Till Conrad, Executive Vice President of Sales at Toyota Motor Europe.

Toyota: A Stronghold in Passenger Cars and LCVs

Toyota maintained its position as Europe’s second best-selling passenger car brand, with 591,115 units sold, marking a +1% year-on-year growth. Electrified vehicles accounted for 76% of Toyota’s sales, driven by strong demand for its hybrid and plug-in hybrid models.

Top-selling Toyota models included:

  • Yaris Cross – 103,580 units (all hybrids)
  • Yaris – 90,549 units
  • Corolla range – 78,920 units
  • Toyota C-HR – 76,432 units (including new Plug-in Hybrid)
  • Aygo X – 50,083 units
  • RAV4 – 43,558 units

Toyota’s plug-in hybrid sales jumped an impressive +272%, reaching 42,200 units, fueled by the debut of the new Toyota C-HR Plug-in Hybrid. Battery electric vehicle (BEV) sales rose by +46% year-on-year, totaling 27,773 units.

Meanwhile, Toyota Professional, the brand’s light commercial vehicle division, also impressed with 80,448 vehicles sold, a +12% year-on-year increase — a notable success in a competitive and often volatile LCV segment.

Lexus: Gaining Ground in the Premium Segment

Luxury subsidiary Lexus recorded 44,213 vehicle sales in H1 2025, a +7% rise year-on-year, outperforming the broader premium market. Lexus electrified sales grew even faster, up +13%, with an electrification mix of 95% across Europe and 100% in Western Europe.

Key Lexus performers included:

  • Lexus LBX Hybrid – 14,757 units
  • Lexus NX (Hybrid & Plug-in Hybrid) – 13,607 units
  • Lexus UX (Hybrid & BEV) – 4,703 units

With a 2.5% share of the premium market, Lexus continues to strengthen its presence, particularly in urban and compact SUV segments where models like the LBX and NX are resonating with customers seeking upscale electrified mobility.

A Multi-Pathway Strategy for Carbon Neutrality

TME’s results underscore the effectiveness of its multi-pathway strategy — offering a broad spectrum of powertrain technologies including hybrids, plug-in hybrids, battery electric vehicles, and hydrogen fuel cell models. This diversity has allowed Toyota and Lexus to navigate fluctuating regional preferences and infrastructure limitations while staying firmly aligned with their carbon neutrality ambitions.

TME Sales Highlights (Jan–Jun 2025):

  • Total Sales: 635,328 (+1.4%)
  • Total Electrified Sales: 491,197 (+6%)
  • Electrified Mix: 80% (West Europe), 58% (East Europe), 77% (Total)

As the European automotive market wrestles with tightening regulations and a fragmented electrification landscape, Toyota Motor Europe stands out as a brand with both strategic clarity and commercial momentum, well-positioned to lead in the era of low-emission mobility.

Source: Toyota Europe