STLA to Issue Recall of More Than 123K Vehicles to Fix Trim Pieces

Core Insights - Stellantis N.V. is recalling 123,396 vehicles in the U.S. due to potential road hazards from detached window trim pieces [1][2][9] - The company is facing significant challenges in North America, with U.S. sales declining for eight consecutive quarters [2] - Financial performance has deteriorated, with a 13% year-over-year revenue drop to €74.3 billion in H1 2025 and a net loss of €2.3 billion [3][9] - Leadership changes, including the exit of CEO Carlos Tavares, add uncertainty, with new CEO Antonio Filosa expected to present a turnaround plan in early 2026 [4][9] - Near-term risks include projected tariff costs of €1.5 billion for 2025 and a negative free cash flow of €3 billion in H1 2025 [5] Financial Performance - Revenues decreased by 13% year-over-year to €74.3 billion in the first half of 2025 [3] - The company reported a net loss of €2.3 billion, a significant decline from a profit of €5.6 billion in the same period last year [3][9] - Adjusted operating income fell to €500 million, with profit margins collapsing to 0.7% from 10% [3] Leadership and Strategy - Following the departure of CEO Carlos Tavares, new CEO Antonio Filosa will outline a turnaround strategy in early 2026 [4] - The leadership transition contributes to low visibility regarding the company's future performance [4] Risks and Challenges - Stellantis anticipates €1.5 billion in tariff costs for 2025, with €0.3 billion already accounted for in H1 2025 [5] - The company's net financial position has weakened, with net debt rising to €6.5 billion after cash burn in the first half of 2025 [5]