Stellantis thanks Trump for a one-month tariff exemption, gaining time to boost U.S. production amid declining sales and rising costs.
MILAN (Reuters) -Automaker Stellantis said on Thursday it shared U.S. President Donald Trump's goal of building more cars in the United States, as it thanked him for granting a one-month exemption from tariffs on Canada and Mexico.
The company has the largest portfolio in the automotive industry, with 14 brands spread across the United States and Europe. It’s simply too many.
As the automaker navigates this rough stretch without a CEO, Stellantis leaders are tempering expectations for a quick financial turnaround.
Stellantis share price remains on edge, and is at risk of further downward momentum as its growth and profits slow and its exposure to the United States remain. STLA stock was trading at $12.90 in New York,
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Stellantis is thanking the Trump administration for giving it a one-month exemption from tariffs on Canada and Mexico, saying it aims to build more cars in the U.S.
Stellantis, S&P
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S&P downgrades Stellantis rating, expects tariff headwinds
S&P Downgrades Stellantis Over Margin Concerns
S&P Global Ratings lowered its credit rating on Stellantis after the Jeep and Chrysler maker's margins last year were dented by a pullback in shipments. The ratings firm said Thursday that Stellantis's 2024 margins came in below prior expectations after the company took actions to reduce North American dealer inventory ahead of schedule.
S&P downgrades Stellantis credit rating
S&P said Thursday that it has downgraded the credit rating of Stellantis from BBB+ to BBB due to concerns about the weak growth margins of the Italian-American-French auto group. The ratings agency forecast that difficulties in obtaining credit for consumers in North America and Europe will limit Stellantis's ability to boost volumes.
A possible 25 percent levy on goods from Canada and Mexico is likely to raise the prices consumers pay for new cars and trucks, and disrupt complex supply chains.
European automakers' shares jumped on Thursday after U.S. President Donald Trump gave carmakers a one-month reprieve from his punishing 25% tariffs on Canada and Mexico, with Chrysler-to-Fiat maker Stellantis pledging more American-made cars.
In the carmaker's profit-rich U.S. market, vehicle sales fell 15% overall in 2024, and 7% for the fourth quarter. But the automaker cut prices and offered deep incentives in the final weeks of the year, which helped pick up the sales pace and clear the glut of older cars off dealer lots.
Dodge Durango GT, R/T and SRT Hellcat are now significantly cheaper than before, and so is the base 2025 Hornet
The president said he would pause a 25 percent tariff on cars coming from Canada and Mexico under a trade pact for one month, while other levies stay in place.
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