By Giulio Piovaccari and Gilles Guillaume
MILAN (Reuters) -Stellantis on Wednesday suspended its guidance for a moderate recovery this year, after a profit drop in 2024, due to the uncertain impact of U.S. President Donald Trump’s tariffs, and said it would review capital spending plans.
The move is "due to evolving tariff policies, as well as the difficulty (in) predicting possible impacts on market volumes and the competitive landscape," the Franco-Italian-American automaker said in a statement.
Rivals General Motors (NYSE: GM ), Volvo (OTC: VLVLY ) Cars and Mercedes-Benz (OTC: MBGAF ) have also withdrawn their financial guidance this week, citing the uncertainties caused by U.S. trade policies.
Jeep and Chrysler maker Stellantis (NYSE: STLA ) in 2024 imported over 40% of the 1.2 million vehicles it sold in the United States, mostly from Mexico and Canada.
In a slide presentation on Wednesday, it said it had reduced vehicle imports in April in response to tariffs, while relying on "solid inventories".
But the group said it would also reassess capital spending plans between May and June, and calibrate "production and employment to reduce impacts on profitability".
"Response and mitigation actions will continue to be refined as appropriate," it said.
Presenting its 2024 results in February, Stellantis had given 2025 guidance for a mid-single digit adjusted operating profit (AOI) margin, positive revenue growth and positive free cash flow.
Last year, the group suffered a 64% fall in its AOI and burnt more than 6 billion euros ($6.8 billion) in cash, mostly weighed down by a slump in its U.S. business. Poor results led to the ousting of CEO Carlos Tavares in December.
A new CEO is due to be announced by the end of June, Stellantis confirmed on Wednesday.
The suspended 2025 forecasts were based on the assumption of no changes to tariffs and global trade, a scenario upended by a slew of tariff announcements, and changes, by Trump this month.
On Tuesday, Trump softened the blow of his auto tariffs through measures mixing credits with relief from other levies on parts and materials.
Milan-listed shares in Stellantis were up 1.3% at around 0810 GMT.
In the first quarter, Stellantis’ net revenues fell 14% year-on-year to 35.8 billion euros, "primarily due to lower shipment volumes, as well as unfavorable mix and pricing", it said.
That compared with analysts’ forecast of 35.4 billion euros in a Reuters poll.
Jefferies analysts said in a note that they were struggling to find positive indicators in the results, while Bernstein noted some "positives", including pricing ahead of expectations in all key regions, "although amid great uncertainties".
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