Stellantis has suspended its full-year guidance for 2025, pointing to the impact of newly imposed U.S. auto tariffs and growing uncertainty over market conditions and pricing competitiveness.
The global automaker — parent to Jeep, Ram, Chrysler, Fiat, and Peugeot — reported a 9% drop in global vehicle shipments for Q1, driven by a sharp 20% decline in North America and continued weakness in China, India, and Europe. In addition, shipments fell to 1.22 million units, with net revenue slipping 14% to €35.8 billion ($40.76 billion).
While retail sales improved for high-demand models like the Jeep Grand Cherokee and Ram 1500, Stellantis is grappling with a broader commercial slowdown and operational missteps. CFO Doug Ostermann said the company has made “early, initial progress” in recovery efforts, including higher North American retail orders and stronger European market share.
Moreover, the impact of President Donald Trump’s 25% tariff on imported vehicles, which took effect in early April, has been especially severe for Stellantis, which imports more than 40% of its U.S. sales.
In response, the automaker temporarily halted production at major Canadian and Mexican assembly plants, prompting around 900 layoffs at U.S. parts facilities. While some plants, including Windsor Assembly, have resumed operations, the company continues to adjust sourcing and production strategies.
Additional headwinds include strict emissions rules in Europe, pent-up U.S. vehicle inventories, quality concerns, and ongoing gaps in its product portfolio — all of which have fueled internal and dealer frustrations. Stellantis is also in the midst of a leadership transition following CEO Carlos Tavares’ December 2024 departure. The company expects to name his successor from a shortlist of five candidates, two of whom are internal, by mid-2025.
