Stellantis Freezes 2025 Forecast Amid Tariff Chaos

Stellantis has hit the brakes on its 2025 earnings forecast, citing what it calls “tariff-related uncertainties” tied to the Trump administration’s newly implemented 25% import duties on vehicles and parts.

In a rough first quarter for the global automaker, revenue dropped 14% year-over-year to $40.7 billion (€35.8 billion). The company has since taken drastic steps to soften the blow — halting some European vehicle imports to the U.S., scaling back shipments of other imported models, and temporarily pausing production at key assembly plants in Canada and Mexico.

The move has already had ripple effects. Nearly 900 workers at U.S. parts plants were temporarily laid off earlier this month as Stellantis reassessed its North American operations. While some production has recently resumed — including at the Windsor Assembly Plant where the Chrysler Pacifica and all-new Dodge Charger Daytona EV are built — the automaker says uncertainty remains high.

“Despite a challenging operating environment, we made early, initial progress on our commercial recovery efforts in the first quarter,” Stellantis CFO Doug Ostermann said in a statement to investors on Wednesday. “This includes higher retail order intake in North America and improved market share in Europe.”

The automaker saw global vehicle shipments fall 9% during the first quarter compared to the same period last year, mostly due to lower production out of North America. North America, long the company’s profit backbone, took a major hit — revenue dropped about 25% to $16.3 billion (€14.4 billion), and shipments fell roughly 20% to 325,000 vehicles.

Still, there was a glimmer of hope. Stellantis reported U.S. retail market share is stabilizing thanks to strong sales from key nameplates like the Jeep® Grand Cherokee and Ram 1500. These models continue to serve as bright spots in an otherwise turbulent period.

The Detroit-based company is also dealing with internal struggles, including inventory pileups that have angered U.S. dealers, production cuts that sparked union complaints, product lineup gaps, and ongoing quality control issues.

Stellantis is particularly vulnerable to U.S. tariffs because over 40% of its first-quarter U.S. sales were imports. As soon as the new duties kicked in at the beginning of April, the company immediately paused production at several cross-border factories to understand the long-term impact.

It’s not just Stellantis feeling the pressure. Other automakers like General Motors (GM), which reported earnings the day before, also expressed concern over their full-year financial outlook given the unpredictable tariff situation.

While Stellantis only reports full earnings twice a year, its Q1 revenue and shipment data paint a picture of a company bracing for impact — and hoping U.S. policymakers come to the table soon to work toward a solution.

Source: The Detroit News