Several global automakers, including Mercedes-Benz and Stellantis, have joined Michigan General Motors and Volvo in suspending their respective annual financial guidance reports to investors amid rising tariff uncertainty.
Wednesday’s announcement comes as President Donald Trump signed an executive order on Tuesday to even soften the car toll hit he imposed earlier this month.
“We are further evaluating the impact of tariff policies on North American businesses, but we look forward to continuing cooperation with the US administration to strengthen the competitive American automotive industry and stimulate exports.”
Stellantis said “we are suspending financial guidance for 2025 … as it is difficult to predict the evolution of tariff policies and the volume of the market and the potential environmental impact of competition.”
This happens amid a layoff for Stellantis, an automaker that houses 14 brands including Jeep, Ram Truck, Dodge, Fiat and Maserati. In April, he temporarily fired 900 workers for two weeks, saying it was due to uncertainty about how the tariffs imposed by Trump would affect the business.
Stellantis’ Americas Chief Operating Officer Antonio Filosa said in a company-wide email that he not only assessed the medium-term and long-term impact of these tariffs on its operations, but also “decided to take immediate action.”
The company reported a 14% decline in first quarter revenue in its first quarter in its first quarter revenue report released Wednesday.
Europe’s largest automakers, Mercedes-Benz and Volkswagen, reported a significant decline in net profits from the same January to March before US tariffs began.
Mercedes cited “custom policy volatility,” which means business development is unpredictable. Mercedes’ net profit plummeted almost 43% in the first three months of the year to plunge to $1.9 billion (Euro 1.73 billion).
Financial Director Harald Wilhelm said Mercedes is still in a strong position thanks to what he said was a strong position in profitable top-end vehicles.
“This, combined with a sound balance sheet, provides a solid foundation for navigating our company through periods of geopolitical uncertainty,” he said.
“Towards the bottom edge.”
Around 40 companies across the world have crossed industries to lower or lower their progress guidance in the first two weeks of the first quarter revenue season. On Tuesday, social media giant SNAP declined to provide future guidance, saw a slower ad spending, raising questions about advertising budgets due to tariff impacts, and dropped its shares by 15% on Wednesday.
Before the tariffs, European automakers were already facing slower sales of electric vehicles, tough competition from local rivals and China’s EVs, a market that is important. Volkswagen, a group of 10 brands, including Audi, Skoda and Porsche, said its net profit fell 40.6% to $2.49 billion (EUR 219 million).
For the rest of the year, automakers said they are looking forward to business “towards the bottom edge” of guidance, citing challenges such as increased competition, stricter emissions regulations and trade tensions.
Speaking about the appeals to analysts and investors, Volkswagen’s finance chief Arno Antritz said it was “too early” for Volkswagen to step up production in the US to avoid tariffs.
Volkswagen expects to have a profit margin of 5.5-6.5% next year, but its guidance does not take into account changeable US tariffs.
“It’s very difficult to give a full year forecast,” Antritz said.
UBS analyst Patrick Hammel wrote in a client’s note that the German group’s outlook does not “include the impact of US tariffs,” but rather calls it “essentially a withdrawal of guidance.”
In the UK, luxury automaker Aston Martin Lagonda announced it was restricting shipments to the US, but maintained its annual guidance as it reported a 13% decline in revenue for the first quarter.
Relieve some tariffs
In addition to the 25% tariff on completed imported cars, the industry is affected by 25% tariffs on Trump’s 25% steel and aluminum.
The automaker is also set to face new tariffs on foreign auto parts, which are expected to take effect on May 3rd.
Trump’s new policy means that businesses will not face both 25% collection of imported vehicles and 25% of steel or aluminum. Importers will pay higher of two taxes, not both, a US Commerce Department official said.
Another change is that companies importing parts for assembled vehicles in the US can offset 3.75% of the vehicle’s list price in the first year and 2.5% in the second year.
However, analysts believe this grace doesn’t really work as automakers face the impact of tariffs on their businesses.
“This sounds good on paper (no worse than the original car toll slate), but a US car with all US parts made in the US is not possible today, and it could take four to five years for many factories/production hubs to build in the US.