Stellantis, Mercedes-Benz Withdraw Profit Guidance Amid Tariff Uncertainty

Stellantis has suspended its 2025 financial guidance and will review its capital spending plans due to uncertainty from new U.S. trade tariffs introduced by President Donald Trump. The carmaker, which sells brands like Jeep and Chrysler, pointed to the unpredictability of tariff impacts on demand, market volumes, and competition as the main reason for this move. Stellantis joins other automakers, including General Motors, Volvo Cars, and Mercedes-Benz, who have also withdrawn outlooks amid shifting U.S. trade policies. The company had already faced significant challenges, including a 64% drop in adjusted profit and over €6 billion in negative cash flow last year, mostly due to a weak U.S. market. In response to tariffs, Stellantis has reduced vehicle imports and indicated it may recalibrate production and employment to protect profitability. The company is also in the process of appointing a new CEO, with an announcement expected by the end of June.