Stellantis sees revenues, shipments drop in first quarter; financial guidance suspended
The automaker, which owns the Jeep, Ram, Chrysler, Dodge and Fiat brands, said its revenues dropped $40.7 billion (35.8 billion), and it said consolidated shipments of a bit over 1.2 million vehicles represented a 9% drop from the first quarter of 2024.
A large share of the impact was in North America, which saw a 20% drop in shipments, according to Chief Financial Officer Doug Ostermann.
In a webcast April 30, Ostermann said the automaker was still absorbing tariff adjustments announced the day before by the Trump administration. Those changes are expected to provide some relief to automakers, but they were described by an analyst as a 'gut punch' that would still results in thousands of dollars in added cost to new vehicles.
Ostermann indicated that the automaker would be looking to its supply chain as it reacts to tariffs, but plans for the Jeep Cherokee replacement, which an analyst indicated was expected to be built in Mexico, haven't changed. The Cherokee was formerly built at the Belvidere Assembly Plant in Illinois, which is expected to reopen with midsize truck production in the next couple of years.
He touted an ongoing dialogue with the Trump administration, noting that 'we're seeing the administration through this dialogue mitigate some of the impact' of the tariffs, and that the company believes the administration doesn't "want to hurt the profitability of the industry.'
Ostermann said the automaker had paused shipments on some tariff-affected vehicles, relying on what's currently in inventory, but he noted that three out of five vehicles sold in the United States are built in the country and that the automaker has "an exceptionally well-balanced geographic footprint."
The results came April 30 in Stellantis' first quarter financial report, which — unlike the company's Detroit Three competitors — is only a partial release. The company is scheduled to release a full earnings report in July, but has said it plans to shift to regular quarterly earnings reports in the future.
More: GM reports lower first-quarter profit after production hurdles hit full-size pickups, SUVs
Stellantis has struggled in recent reporting periods and is currently in the midst of a search for a new CEO. Former CEO Carlos Tavares left abruptly late last year, and his replacement is expected to be named in the coming months. In 2024, the automaker reported a 70% drop in net profit compared to 2023.
Despite its challenges, the automaker plans to pay a 77-cent (0.68 euro) per share dividend on May 5, a move that has been heavily criticized by the UAW. The payout is expected to equal about $2.26 billion (2 billion euros).
Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber. Submit a letter to the editor at freep.com/letters.
(This is a developing story.)
This article originally appeared on Detroit Free Press: Stellantis sees revenues, shipments drop, suspends financial guidance
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Jim Cramer Says Reports Of Apple Inc. (AAPL)'s 'Death' Are Overblown
We recently published . Apple Inc. (NASDAQ:AAPL) is one of the stocks Jim Cramer recently discussed. Giuseppe Costantino/ Apple Inc. (NASDAQ:AAPL)'s shares have reversed tack recently as the firm appears to have smoothed over its friction with the Trump administration. The firm announced a $100 billion additional investment in the US earlier this month, and the shares have gained 13.8% since then. Cramer discussed Apple Inc. (NASDAQ:AAPL)'s shares adding 30 dollars to their value in ten days: 'Well we've got a lot of exciting things that people are talking about. About the release perhaps of new AI powered products. Uh, smart home push, including robots. Life like version of Siri, well that would certainly be helpful. Smart speaker with display and home security camera. I don't know, home security is something that people want but the main thing here is that if we get robots and they're not from Musk, they're from Apple, I think we'd be very interested in that. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Boston Globe
24 minutes ago
- Boston Globe
Trump calls on Federal Reserve official to resign after ally accuses her of mortgage fraud
Pulte also charged in his letter that Cook has listed her condo in Atlanta, Georgia, for rent. Mortgages for homes used as principal residences typically carry lower interest rates than properties that are purchased to rent, Pulte's letter said. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The allegation represents another front in the Trump administration's attack on the Fed, which has yet to cut its key interest rate as Trump has demanded. If Cook were to step down, then the White House could nominate a replacement. And Trump has said he would only appoint people who would support lower rates. Advertisement The more members of the Fed's governing board that Trump can appoint, the more control he will be able to assert over the Fed, which has long been considered independent from day-to-day politics. Trump will be able to replace Chair Jerome Powell in May 2026, when Powell's term expires. Yet 12 members of the Fed's interest-rate setting committee have a vote on whether to raise or lower interest rates, so even replacing the Chair doesn't guarantee that Fed policy will shift the way Trump wants. Advertisement All seven members of the Fed's governing board, however, are able to vote on rate decisions. The other five voters include the president of the Fed's New York branch and a rotating group of four of the presidents of the Fed's other 11 regional branches. Trump appointed two members of the Fed's board in his first term, Christopher Waller and Michelle Bowman. Both dissented July 30 from the central bank's decision to keep its rate unchanged in favor of a rate cut. Another Fed governor, Adriana Kugler, stepped down unexpectedly Aug. 1, and Trump has appointed one of his economic advisers, Stephen Miran, to fill out the remainder of her term until January. If Trump is able to replace Cook, the first Black woman to serve on the Fed's board, as well as Kugler and Powell, that would give him a clear majority on the board of governors. Powell, however, could stay on the board after finishing his term as chair next May. The Federal Reserve declined to comment on the accusation. Trump has for months demanded that the Federal Reserve reduce the short-term interest rate it controls, which currently stands at about 4.3%. He has also repeatedly insulted Powell, who has said that the Fed would like to see more evidence of how the economy evolves in response to Trump's sweeping tariffs before making any moves. Powell has also said the duties threaten to raise inflation and slow growth. Advertisement Trump says that a lower rate would reduce the government's borrowing costs on $37 trillion in debt and boost the housing market by reducing mortgage rates. Yet mortgage borrowing costs do not always follow the Fed's rate decisions. The Trump administration has made similar claims of mortgage fraud against Democrats that Trump has attacked, including California Sen. Adam Schiff and New York Attorney General Letitia James.
Yahoo
24 minutes ago
- Yahoo
Trump Family Expands Crypto Bets as Thumzup Pivots Into Dogecoin Mining
Thumzup Media Corp. (TZUP), which counts Donald Trump Jr. as a large shareholder, said it will acquire Dogehash Technologies, Inc. in an all-stock deal, pivoting from digital marketing into industrial-scale crypto mining Under the agreement, Dogehash shareholders will receive 30.7 million Thumzup shares, according to a Tuesday release, valuing the transaction at $153.8 million, based on the shares' closing price. The combined company will rebrand as Dogehash Technologies Holdings, Inc. and list on Nasdaq under the ticker XDOG, pending shareholder approval later this year. Dogehash operates about 2,500 Scrypt ASIC miners across renewable-powered data centers in North America, with plans to scale up further in 2026. Unlike firms that pad their balance sheets by simply buying coins, Dogehash has invested in its own infrastructure, giving it direct exposure to dogecoin (DOGE) and litecoin (LTC) block rewards at a lower cost base. The deal comes on the heels of Thumzup's $50 million stock offering in July, earmarked for mining expansion and digital asset accumulation. The company says it will also use Dogecoin's DogeOS layer 2 to stake in DeFi products, aiming to boost miner returns beyond standard rewards. This new deal adds to the Trump family's expanding crypto empire. Eric Trump and Donald Jr. launched American Bitcoin earlier this year with Hut 8, which has over 60,000 miners. Meanwhile, World Liberty Financial, another Trump-backed venture, struck a $1.5 billion deal with Nasdaq-listed ALT5 Sigma to inject its WLFI token into the firm's treasury. Thumzup stock fell 41% to $5.01 on Tuesday.
