On April 30, 2025, major automakers, including Stellantis and Mercedes-Benz, announced the withdrawal of their profit forecasts due to the unpredictable nature of U.S. President Donald Trump’s evolving tariff policies. This decision aligns with similar moves by General Motors and Volvo Cars, highlighting the growing uncertainty in the automotive industry.
Volkswagen issued guidance at the lower end of its forecast range, with UBS analyst Patrick Hummel noting that the outlook did not account for U.S. tariffs, effectively rendering it a withdrawal of guidance. Stellantis CFO Doug Ostermann expressed the industry’s sentiment, stating, “Most of us are in a period of waiting for a bit more clarity.”
The recent imposition of 25% tariffs on imported autos has disrupted demand and increased vehicle costs, compounding existing challenges such as the transition to electric vehicles. Mercedes-Benz warned that prolonged tariffs could significantly erode profit margins, while Aston Martin is limiting U.S. exports after stockpiling supplies.
Although President Trump introduced some relief measures, including exemptions for U.S. domestic automakers from additional steel and aluminum tariffs, the overall investor reaction remains mixed. Analysts predict continued volatility, with companies like Volkswagen choosing to delay financial updates until there’s more policy clarity.
The situation underscores the pressing need for stable trade conditions to support long-term industry investments and consumer confidence.
Source: Reuters
