Toluca, Mexico — Stellantis, the global automotive giant known for brands like Jeep, Dodge, and Peugeot, announced on Wednesday that it is retracting its financial forecasts for 2025 amid lingering uncertainties linked to U.S. trade policies. The decision follows a steep decline in the company’s first-quarter net revenues, which amounted to 35.8 billion euros (approximately $40.7 billion). This figure represents a 14% drop compared to the same period last year.
The decrease in revenue primarily stemmed from reduced shipment volumes, an unfavorable regional sales mix, and overall price normalization. Analysts had anticipated a smaller revenue figure of around 35.4 billion euros, highlighting a significant misalignment between expectations and actual performance.
Doug Ostermann, Stellantis’ chief financial officer, acknowledged the challenges but noted that other key performance indicators showed early signs of a turnaround. “While our first-quarter results fell short compared to the previous year, some metrics indicate initial progress as we work on our commercial recovery,” Ostermann stated.
The company’s withdrawal of its financial guidance is a direct response to ongoing tariff-related uncertainties. Stellantis executives have expressed a commitment to engage actively with policymakers to navigate these evolving trade landscapes. In particular, they remain focused on the implications of the tariff policies imposed by the Trump administration.
In the wake of Stellantis’ announcement, its shares on the Milan Stock Exchange rose by 2.9% in early trading. However, the stock has plummeted about 32% since the beginning of the year, reflecting broader market apprehensions within the automotive sector.
The setbacks come shortly after the automotive industry received a degree of relief from the U.S. administration. On Tuesday, President Trump signed an executive order aimed at mitigating some existing auto tariffs. While the 25% tariff on imported vehicles remains intact, the new measures are designed to alleviate the cumulative duties arising from additional levies on materials like steel and aluminum.
Under this recent directive, new 25% tariffs on auto parts that were scheduled to begin on May 3 will still go into effect. However, vehicles assembled in the United States may qualify for partial reimbursements on these tariffs for two years. This reversal in tariff strategy signifies the administration’s recognition of the complexities affecting both domestic and international manufacturers.
As Stellantis navigates these tumultuous waters, the broader automotive industry watches closely, hoping that easing tariffs could aid in stabilizing production and boosting sales in the unpredictable marketplace.