Global automaker Stellantis has officially withdrawn its 2025 performance forecast, citing uncertainty over possible high import tariffs under U.S. President Donald Trump. In an announcement on Wednesday, the company also stated it would revisit its existing facility investment plans between May and June.
In 2024, Stellantis sold a total of 1.2 million vehicles in the U.S., with over 40 percent imported from USMCA member countries such as Mexico and Canada. In response to mounting tariff pressures, the company began reducing imports in April and continued sales using existing inventory, which it currently deems to be sufficient.
Strategic Adjustments in Light of Tariff Risks
To minimize the potential impact of tariffs on profitability, the company hinted at possible adjustments to its production and workforce. Stellantis had initially aimed to maintain a mid-single-digit adjusted operating income (AOI) margin this year, with plans for revenue growth and positive free cash flow. However, those projections have now been officially withdrawn.
Stellantis is not alone in this move. GM (General Motors) and Mercedes-Benz also retracted their 2025 earnings forecasts earlier this week, citing uncertainty over U.S. tariff policy.
In the first quarter of 2025, Stellantis reported revenue of 35.8 billion EUR (approximately 40.5 billion USD), down 14 percent year-over-year, with weaker product mix and pricing conditions contributing to the results. The figure closely aligned with the market consensus of 35.4 billion EUR (40 billion USD) compiled by Reuters.
Meanwhile, the successor to former CEO Carlos Tavares—who stepped down at the end of last year amid poor performance—is expected to be announced by the end of June.
Stellantis’s decision to withdraw its outlook appears to be a defensive move, not due to immediate financial deterioration, but due to the anticipated risk of a 25 percent tariff on imported vehicles strongly suggested by President Trump. Because a large portion of Stellantis’s U.S. sales are supplied from Mexico and Canada, its global production structure is inherently exposed to structural risk.
Trump has previously stated that tariffs are The Ultimate “Negotiating Tool” and has signaled comprehensive tariff hikes on both imported vehicles and parts. As such, automakers with high import dependence in the U.S. will inevitably need to revise their strategies.
The latest earnings report is less about short-term financial figures and more about signaling a shift in Stellantis’s broader strategy—potentially including delayed investments, production relocation, and workforce restructuring. Amid growing pressure to increase domestic manufacturing in the U.S., Stellantis may soon explore options such as relocating North American production capacity or investing in new domestic plants.
This trend could serve as an opportunity for automakers like Hyundai, Kia, and Toyota, which already maintain a high level of local production in North America. Conversely, it highlights the intensifying dual risks faced by European and Asian carmakers: import tariffs and rising pressure to manufacture locally.
