Stellantis Has Spent 2025 Bleeding Cash

Happy Monday! It’s July 21, 2025, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. This is where you’ll find the most important stories that are shaping the way Americans drive and get around.

In this morning’s edition, we’re looking at Stellantis’ multi-billion-dollar 2025 losses, as well as BYD’s stagnation. We’ll also look at Europe’s retaliation against American tariffs, and the end of an NHTSA investigation into Nissan.

Stellantis hasn’t had a fantastic 2025 so far, according to the company’s financial records. The automaker is $2.7 billion in the hole, and still trying to navigate the ongoing trade war the Trump administration has instigated between the U.S. and Europe — not great for a half U.S., half European company. From Reuters:

Stellantis reported a preliminary 2.3 billion euro ($2.7 billion) first-half loss as it faces the dual challenge of revamping its product ranges in Europe and the United States while also dealing with the impact of U.S. tariffs on vehicles and auto parts.

Stellantis said on Monday it booked 3.3 billion euros in pre-tax charges for the first half as it cancelled programmes, including a hydrogen fuel cell project, kept setting aside money for fines linked to U.S. pre-Trump carbon emission regulation, while investing more in popular hybrid cars in Europe and large gasoline-powered models in the U.S. market.

Lucky for Stellantis, CAFE regs are dead — that money being held for fines can now go to other uses. Presumably paying tariffs one way or another. 

BYD has been taking the world by storm over the past few years, but the past few weeks have been a different story. The company’s sales have slowed, and it may even come in below its targets for the year — not something we’re used to seeing from the automaker that once seemed primed to end all competitors. From Automotive News China:

BYD Co.’s monthly sales have stagnated of late and with the summer months being a traditionally slower time for consumer purchases, that trajectory isn’t expected to reverse any time soon.

Discounting is also now being looked sternly upon by Beijing, with China last week pledging to rein in “irrational competition” in the electric vehicle sector, reflecting authorities’ wish to tackle the deflationary price wars that are threatening economic and industrial growth.

Some of BYD’s international forays are also proving more challenging than expected, raising the question, is China’s No. 1 automaker on shaky ground?

In all likelihood, BYD will end up doing just fine once government heat on the whole discount thing cools off. Turns out, people like cheap, practical cars. Who would’ve thought? 

The European Union is one of the United States’ biggest trading partners, which of course means we’re now in a dick-measuring contest over tariffs with the bloc. Why? God only knows. Now our end is apparently proposing tariff levels that would functionally stop trade, so the EU’s representatives are getting tired of offering carrots and are considering busting out the sticks. From Reuters:

The European Union is exploring a broader set of possible counter-measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats.

An increasing number of EU members, including Germany, are now considering using wide-ranging “anti-coercion” measures which would let the bloc target U.S. services or curb access to public tenders in the absence of a deal, diplomats say.

The European Commission, which negotiates trade agreements on behalf of the 27-member bloc, had appeared on course for a agreement in which the EU would still have faced a 10% U.S. tariff on most of its exports, with some concessions.

Such hopes now seem dashed after President Donald Trump’s threat to impose a 30% tariff by August 1, and following talks between EU Trade Commissioner Maros Sefcovic and U.S. counterparts in Washington last week.

What’s next for our tariffs? Anyone who can predict the answer to that question should be a millionaire by the end of the year from trading off the uncertainty alone. Will that be you?

The National Highway Traffic Safety Administration launched an investigation into Nissan back in 2023, for vehicles that could catch fire. This is generally not something you want your vehicles to do, but it seems the investigation lit enough of a fire under Nissan to get things solved. After the company issued a recall for the affected vehicles, NHTSA’s investigation is now over. From Reuters:

The National Highway Traffic Safety Administration said on Monday that it is closing a preliminary evaluation into 454,840 Nissan vehicles over engine failure after the Japanese automaker issued a recall in June.

…

An engine failure could result in a fire if internal components detached and damaged the engine block, creating a hole that allowed engine oil to reach hot surfaces, the U.S. auto safety authority said.

NHTSA said that a total of 1,878 incidents were reported, of which 12 resulted in either crash or a fire.

The probe included under its scope certain models of Nissan Rogue, Altima and luxury vehicles, Infiniti’s QX50 and QX55, the NHTSA report said.

If you own a Rogue, QX50, or QX55, run your VIN and make sure you don’t have any open recalls. If you do, get those done as soon as you can. Maybe carry your kitchen fire extinguisher around in the car until then, just in case. 

I love the space shuttle. I’ve been meaning to make a trip out to the Intrepid here in New York, since they got a shuttle since I last visited. Maybe they still have that pocket knife they confiscated from me as a child, as if a 12-ish-year-old kid was going to commandeer the U.S.S. Intrepid with a Leatherman. 

‘Kids With Guns” has to be one of the more popular Gorillaz tracks out there, and I still think it’s underrated. It’s always better than you remember.