Vauxhall owner slumps to £2bn loss after botched bet on hydrogen

 The owner of Vauxhall has slumped to a €2.3bn (£2bn) loss after cancelling an expensive bet on hydrogen-powered vehicles and electric cars.

Stellantis, which also owns Fiat and Peugeot, said scrapping plans for a fleet of hydrogen-powered vans as well as soaring restructuring costs and the impact of Donald Trump’s trade war would push it into the red for the first half of 2025.

In results on Monday, it reported a €3.3bn hit to costs because of the cancelled hydrogen plan as well as plans to divert spending from electric to hybrid vehicles. The move comes after Mr Trump removed emissions-linked penalties for carmakers across the US.

Stellantis had planned to launch a range of hydrogen vans this year under its Pro One division, which were poised to be built in France and Poland.

However the plans were ditched after being deemed too “niche” and expensive. The company’s European operating chief, Jean-Philippe Imparato, said last week the hydrogen market had “no prospects of mid-term economic stability”.

The company is also reviewing its position in Symbio, a hydrogen fuel cell company in which it owns a 33pc stake.

Stellantis is chaired by John Elkann, the grandson of Fiat scion Gianni Agnelli. The loss marks the first move by new chief executive Antonio Filosa, who Mr Elkann chose to replace former boss Carlos Tavares earlier this year.

Trade war fallout

Mr Trump’s tariff blitz, which hit global carmakers with a 25pc rate, has sparked chaos around the world.

The US is the world’s largest importer of vehicles and Stellantis was forced to pause production at plants in Canada and Mexico as Mr Trump unleashed his trade war.

Sales of cars in North America, its biggest market, are expected to drop by 25pc in the second quarter after Mr Trump began imposing tariffs on global trading partners.

It warned that the “early effects of US tariffs” would cost it around €300m.

Stellantis suspended its financial guidance in April due to uncertainty caused by the trade war.

Total revenues at the firm, which also owns Citroen and Jeep, were down 12.6pc to €74.3 over the first half of 2025. Shares in Stellantis fell by more than 3pc as markets opened on Monday.

European sales falter as Chinese rivals surge

Stellantis was also hit by a 6pc slump in volumes in Europe, where EV makers have found themselves battling an influx of cheaper Chinese brands such as BYD.

The company has been battling to reverse its fortunes after Mr Tavares’ department.

Though widely credited with turning the carmaker’s fortunes around in the latter years of the last decade and overseeing a mega-merger with Fiat Chrysler in 2019, Mr Tavares’ departure came after the company was hit by a drastic fall in earnings, with critics alleging a lack of innovative new products, high prices and quality issues.

A profit warning last September wiped 50pc of the value from Stellantis shares. The company is down almost 60pc over the last 12 months.