Stellantis reported Wednesday a 14% slide in revenues for the first quarter. The Euro-American automaker had previously forecast a turnaround later in the year but said during a webcast it was suspending future guidance in the face of Pres. Trump’s new auto tariffs. It joins GM and Mercedes in warning that sales and earnings could be at risk. More from Headlight.News.
The promised turnaround at Stellantis all but sputtered out during the first quarter as sales in the U.S. dropped by double digits. With the search for a new CEO still ongoing, the Euro-American automaker struggles to find its direction, reports Headlight.News.
Facing mounting criticism for the automaker’s recent plunge in sales and earnings, Stellantis CEO Carlos Tavares will retire in 2026. The announcement comes amidst a major shake-up in the automaker’s Euro-American management team.
Stellantis is again squaring off with the United Auto Workers in a critical battle over the company’s efforts to trim costs and cut production, charging in a lawsuit the UAW is violating its contract with the company by filing what its lawyers describe as sham grievances.
Once one of the most respected executives in the auto industry, CEO Carlos Tavares is coming under withering fire from investors, dealers and employees as the company’s fortunes fade – especially in North America, its most profitable region. With his contract set to expire early next year, the automaker is considering whether it’s time for a management shake-up.
Prominent Jeep and Ram dealers are increasing pressure on Stellantis executives to boost sales in the United States in the wake of a substantial market-share decline.
U.S. automakers reported strong sales overall for June and the second quarter – with a handful of notable exceptions. In the case of Stellantis, a 21% decline has led the automaker to order temporary layoffs at two plants – with more cuts possible.