More automakers drop earnings guidance over tariffs

PARIS: Germany’s Mercedes-Benz and US-European group Stellantis, whose brands include Jeep, Peugeot and Fiat, joined other automakers Wednesday in suspending their annual financial guidance because of uncertainty over US tariffs.

The announcements came even as US President Donald Trump moved Tuesday to soften the blow from the 25-per cent tariffs that he imposed on car imports earlier this month.“Stellantis appreciates the tariff relief measures decided by President Trump,” its board chairman John Elkann said in a statement. “While we further assess the impact of the tariff policies on our North American operations, we look forward to our continued collaboration with the US administration to strengthen a competitive American auto industry and stimulate exports,” he added.

Stellantis, a 14-brand behemoth that includes Ram trucks, Dodge, Maserati and Opel, reported a 14-per cent drop in its first-quarter sales to 35.8 billion euros ($40.7 billion).Mercedes-Benz and Volkswagen, Europe’s biggest automakers, reported big drops in their net profits over the same January-March period -- before the US tariffs kicked in.

While Volkswagen maintained its financial outlook, Mercedes and Stellantis suspended theirs, a day after similar moves by US auto giant General Motors and Sweden’s Volvo Cars.Stellantis said it was “suspending its 2025 financial guidance... due to evolving tariff policies, as well as the difficulty predicting possible impacts on market volumes and the competitive landscape”.

Mercedes’s net profit plunged almost 43 per cent in the first three months of the year to 1.73 billion euros.Finance chief Harald Wilhelm said Mercedes was nevertheless in a strong position thanks to what he said was a strong position in profitable, top-end vehicles. “This, combined with a healthy balance sheet provides a solid foundation to navigate our company through a period of geopolitical uncertainties,” he said.