Auto Giants Back Away From Issuing Financial Guidance

Major automakers are pulling financial forecasts as tariff uncertainty muddies the global automotive waters. 

Stellantis, Mercedes-Benz, General Motors, Volvo, and Volkswagen have all hit pause on their annual investor guidance, citing uncertainty stemming from US trade policy. 

Stellantis, which oversees brands from Jeep to Maserati, pulled its 2025 outlook after a 14% year-on-year drop in Q1 revenue to $40.7 billion. The company has already laid off 900 workers in April and warned that more harsh decisions may follow if tariff pressures persist.

The situation arises from an unpredictable mix of geopolitical uncertainty and softening global demand. Mercedes-Benz reported a 43% drop in net profit to $1.9 billion for the first quarter, pointing to unpredictable tariff policy as a barrier to accurate forecasting. 

Volkswagen has said the same thing, with net profit sliding 40.6% to $2.49 billion. Although it expects to maintain a profit margin between 5.5% and 6.5% this year, the figure excludes the financial impact of any future US tariffs, making it a cautious placeholder more than a forecast 

What Does This Mean for Me?

US President Donald Trump attempted to soften the blow earlier this week by signing an executive order that prevents automakers from being hit with overlapping tariffs on imported vehicles and raw materials like steel and aluminium.

Even with these adjustments, the damage is evident. Over 40 global companies across sectors have withdrawn or reduced guidance since the Q1 earnings season began.