Stellantis sees revenues, shipments drop in first quarter; financial guidance suspended
Stellantis this week reported a 14% revenue slide for the first quarter and announced it was suspending its financial guidance for 2025 in the face of 'tariff-related uncertainties.'
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
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