Stellantis NV posted weaker sales on slumping demand in North America, while suspending its financial guidance for the year on uncertainty tied to U.S. President Donald Trump’s auto tariffs.
Revenue fell 14 per cent to €35.8 billion (US$40.7 billion) in the first quarter from a year earlier, the owner of Fiat, Peugeot and Chrysler said Wednesday. Guidance was withdrawn because the evolving U.S. tariff policies make it hard to predict possible effects on market volumes and the competitive landscape.
Stellantis is under pressure to turn around its business after falling sales and profit led to the ouster of former boss Carlos Tavares. Its North American shipments dropped by around a fifth in the quarter, while muted demand in Europe also burdened its results.
The carmaker is still looking for a new chief executive officer as rising trade barriers weigh on auto sales and upend supply chains. The CEO search is well underway and will conclude before the end of June, Stellantis said Wednesday.
The shares rose 0.4 per cent in early trading, and are down by about a third this year.
Trump signed directives on Tuesday easing the impact of his auto tariffs, including by changing some duties on foreign parts and preventing multiple levies from stacking on top of each other. Still, his back and forth has already created uncertainty among carmakers.
Porsche AG, General Motors Co., Volvo Car AB and Mercedes-Benz Group AG lowered or withdrew their annual outlooks this week over the trade tensions. Carmakers have also been cutting costs and adjusting production to deal with the changes.
Led by Chairman John Elkann, Stellantis earlier this month temporarily halted production at plants in Canada and Mexico in response to Trump’s levies. Like some of its rivals, it has been offering discounts to keep shoppers coming to dealerships.
Stellantis has long been struggling in the U.S. — where it also owns the Jeep, Ram and Dodge brands — due to an aging model lineup.
The company’s Maserati brand had a particularly tough quarter, with sales dropping by 50 per cent, a bigger decline than expected, as it took action on pricing to reduce inventories in North America.
In Europe, Stellantis is performing poorly in an overall tepid market. The company’s new-vehicle registrations declined 5.9 per cent in the region in March, while Volkswagen AG and Renault SA managed to increase sales.
Rafaela Lindeberg and Albertina Torsoli, Bloomberg News
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