{"id":299466,"date":"2025-04-02T14:58:00","date_gmt":"2025-04-02T21:58:00","guid":{"rendered":"https:\/\/sftarticles.wpenginepowered.com\/en\/?p=299466"},"modified":"2025-07-01T14:59:31","modified_gmt":"2025-07-01T21:59:31","slug":"stellantis-faces-potential-75-earnings-drop-due-to-new-tariffs","status":"publish","type":"post","link":"https:\/\/cms-articles.softonic.io\/en\/stellantis-faces-potential-75-earnings-drop-due-to-new-tariffs\/","title":{"rendered":"Stellantis faces potential 75% earnings drop due to new tariffs"},"content":{"rendered":"\n<p>Stellantis, the European automaker, is bracing for a potentially devastating impact on its 2025 earnings due to newly imposed <a href=\"https:\/\/en.softonic.com\/articles\/mexican-ev-production-at-risk-as-new-tariffs-loom-over-u-s-market\" target=\"_blank\" rel=\"noopener\" title=\"25% tariffs on imported vehicles and components.\">25% tariffs on imported vehicles and components.<\/a><\/p>\n\n\n\n<p>According to a recent report from investment bank Jeffries, <strong>these tariffs could slash Stellantis\u2019 earnings by as much as 75%<\/strong>. As the automotive industry adapts to an increasingly nationalistic landscape, the ramifications of these tariffs are reverberating across the sector.<\/p>\n\n\n\n<p>Currently, Stellantis heavily relies on North American factories in Canada and Mexico for its vehicle production, with approximately 61% of its branded vehicles sold in the United States being manufactured outside the country.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Report: Trump&#39;s tariffs on imports could cripple Stellantis&#39; annual earnings by 75% <a href=\"https:\/\/t.co\/2vEYoHXnBK\">https:\/\/t.co\/2vEYoHXnBK<\/a> by <a href=\"https:\/\/twitter.com\/SCOOTERDOLL?ref_src=twsrc%5Etfw\">@scooterdoll<\/a><\/p>&mdash; Electrek.co (@ElectrekCo) <a href=\"https:\/\/twitter.com\/ElectrekCo\/status\/1905630082674094147?ref_src=twsrc%5Etfw\">March 28, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">CEO transition crucial as Stellantis grapples with 25% import duties<\/h2>\n\n\n\n<p>The situation is compounded by the fact that Stellantis&#8217; production facilities in the U.S. are operating at only 52% capacity due to a significant decline in consumer sales rates.<\/p>\n\n\n\n<p>Prior to the tariff announcement, Stellantis was already experiencing financial turmoil, <strong>reporting a dramatic 64% drop in earnings before interest and taxes (EBIT) in 2024.<\/strong><\/p>\n\n\n\n<p>This decline came on the heels of a profit warning that prompted the controversial resignation of CEO Carlos Tavares. In the interim, company chairman John Elkann has taken the reins as Stellantis searches for a successor to navigate these tumultuous times.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Trump: Tariffs on cars are &#039;permanent&#039;\" width=\"840\" height=\"473\" src=\"https:\/\/www.youtube.com\/embed\/x1cczdk-wn4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>While Stellantis has the capacity to shift production from Mexico and Canada to the U.S. to mitigate the impact of tariffs, such a transition is fraught with complexities. Elkann has emphasized the importance of maintaining competitiveness within the North American automotive sector while avoiding drastic price increases that could diminish consumer demand.<\/p>\n\n\n\n<p>As the automotive landscape becomes increasingly competitive and challenging, <strong>the selection of Stellantis&#8217; next CEO will be pivotal in steering the company through this crisis.<\/strong> With stock prices at their lowest in years, the new leader will face the daunting task of restructuring strategies to ensure the company&#8217;s survival in a shifting market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stellantis, the European automaker, is bracing for a potentially devastating impact on its 2025 earnings due to newly imposed 25% tariffs on imported vehicles and components. According to a recent report from investment bank Jeffries, these tariffs could slash Stellantis\u2019 earnings by as much as 75%. As the automotive industry adapts to an increasingly nationalistic &hellip; <a href=\"https:\/\/cms-articles.softonic.io\/en\/stellantis-faces-potential-75-earnings-drop-due-to-new-tariffs\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Stellantis faces potential 75% earnings drop due to new tariffs&#8221;<\/span><\/a><\/p>\n","protected":false},"author":9317,"featured_media":299467,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","wpcf-pageviews":0},"categories":[1015],"tags":[8319],"usertag":[],"vertical":[],"content-category":[6849],"class_list":["post-299466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ev","content-category-lifestyle"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts\/299466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/users\/9317"}],"replies":[{"embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/comments?post=299466"}],"version-history":[{"count":1,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts\/299466\/revisions"}],"predecessor-version":[{"id":308234,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/posts\/299466\/revisions\/308234"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/media\/299467"}],"wp:attachment":[{"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/media?parent=299466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/categories?post=299466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/tags?post=299466"},{"taxonomy":"usertag","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/usertag?post=299466"},{"taxonomy":"vertical","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/vertical?post=299466"},{"taxonomy":"content-category","embeddable":true,"href":"https:\/\/cms-articles.softonic.io\/en\/wp-json\/wp\/v2\/content-category?post=299466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}