Paris (AFP) – US-European auto giant Stellantis, whose brands include Jeep, Peugeot, and Fiat, dropped its annual financial guidance on Wednesday due to uncertainty over US President Donald Trump’s tariffs. The automaker, whose brands also include Ram trucks, Opel, and Dodge, said it saw signs of a commercial turnaround despite a 14 percent drop in first quarter revenue to 35.8 billion euros ($40.7 billion). Much of the drop was due to a nine percent fall in shipments to 1.22 million vehicles, due in part to lower production volumes in North America where factories were given extended holiday downtime.
Stellantis suffered a stinging 12 percent drop in the number of vehicles it sold last year, with its key North American market plunging by a quarter, as it struggled to sell a bulge in inventory in the United States. Shipments fell by 20 percent in North America in the first quarter, with revenues down by a quarter. Nevertheless, chief financial officer Doug Ostermann said that the company sees signs of a turnaround. “While first quarter 2025 top-line results were below prior-year levels, other key performance indicators reflect early, initial progress on our commercial recovery efforts,” he said in a statement. That included a jump in orders in North America before tariffs came into place, as well as improvements in Europe.
But the company said it was “suspending its 2025 financial guidance…due to evolving tariff policies, as well as the difficulty predicting possible impacts on market volumes and the competitive landscape.” German luxury carmaker Mercedes-Benz on Wednesday also announced it was suspending its guidance.
– ‘Highly engaged with policymakers’ –
Stellantis said it “is highly engaged with policymakers on tariff policies, while taking action to reduce impacts.” The Trump administration has imposed a 25 percent tariff on imported cars, although some vehicles from Canada and Mexico can benefit from the free trade provisions in place between the three countries. The measures are expected to add several thousand dollars onto the sticker prices of the many US brand cars that are manufactured in Canada and Mexico.
The Trump administration on Tuesday allowed for a phased entry into force of the tariffs on imported car parts and exempted automakers from tariffs on imported aluminium and steel. “Stellantis appreciates the tariff relief measures decided by President Trump,” Stellantis board chairman John Elkann said in a statement. “While we further assess the impact of the tariff policies on our North American operations, we look forward to our continued collaboration with the US administration to strengthen a competitive American auto industry and stimulate exports,” he added.
© 2024 AFP
