Stellantis Withdraws 2025 Guidance Amid Tariff Turmoil and Falling Profits

Stellantis NV (NYSE: STLA) has suspended its 2025 financial guidance, citing escalating uncertainty from U.S. President Donald Trump’s renewed tariff policies, after the automaker reported a steep drop in profits for 2024.

Tariffs Cloud Stellantis' Recovery Plans

In a statement released Wednesday, the Franco-Italian-American automaker said the evolving nature of U.S. tariffs made it “difficult to predict market volumes and the competitive landscape.” This has forced the company to reassess capital spending plans and review operational strategy across production and employment.

Key Takeaways:

• Stellantis imported over 40% of its 1.2 million vehicles sold in the U.S. in 2024, largely from Mexico and Canada.

• Imports were reduced in April to mitigate tariff exposure, with the company relying on inventory buffers.

• The firm now plans to “calibrate production and employment” to cushion profitability impacts.

• Capital expenditure plans will be reevaluated between May and June.

Industry-Wide Impact: GM, Volvo, Mercedes Also Pull Guidance

Stellantis is not alone. General Motors (NYSE: GM), Volvo Cars (OTC: VLVLY), and Mercedes-Benz (OTC: MBGAF) have also withdrawn financial guidance, as Trump’s aggressive trade measures inject volatility into the automotive sector.

Analysts warn that tariffs on cross-border auto trade could fundamentally shift production decisions and cost structures for major automakers, especially those with North American manufacturing footprints.

2024: A Rough Ride for Stellantis

The automaker reported a 64% drop in adjusted operating income (AOI) and burned over €6 billion ($6.8 billion) in cash in 2024. The bulk of these losses stemmed from a sharp downturn in its U.S. business—once a profit center, now a source of financial strain.

These disappointing results also culminated in the removal of CEO Carlos Tavares in December, with the board citing poor North American performance and weak cost management.

What's Next?

With a planned review of capital spending and potential restructuring of jobs and production lines, Stellantis is entering defensive mode. Whether these changes can stabilize the business amid a volatile trade and economic environment remains to be seen.

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Conclusion

As Trump’s tariffs reshape the global auto market, Stellantis’s move to suspend its outlook reflects growing operational uncertainty for automakers with international supply chains. Investors will be closely watching for updates on capital reallocation and cost-cutting efforts in the coming months.