Headlines
S&P downgrades Stellantis rating, expects tariff headwinds
Published by Global Banking and Finance Review
Posted on March 6, 2025
1 min readLast updated: January 25, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on March 6, 2025
1 min readLast updated: January 25, 2026
S&P downgraded Stellantis to 'BBB' due to weak margins and tariff concerns. The automaker plans to pass costs to consumers and may shift assembly to the US.
(Reuters) - Global ratings agency S&P Global said on Thursday it has downgraded Stellantis to "BBB" from "BBB+", citing weak margin prospects.
S&P said it expects the price cuts implemented in North America and Europe late last year coupled with affordability concerns from buyers to limit the automaker's volume growth and margin expansion in those markets.
U.S. President Donald Trump on Wednesday gave carmakers a one-month reprieve from his punishing 25% tariffs on Canada and Mexico.
Stellantis thanked Trump for the tariff pause, and pledged to help the president's America First aim of building more cars in the United States.
The agency in its report added that it does not expect Stellantis to absorb the cost of tariffs and expects the company to pass on the impact using pricing and possibly shifting some assembly to the U.S.
The S&P downgrade comes a week after the Franco-Italian-U.S. automaker gave a cautious outlook for 2025. The company's annual results took a hit from a slump last year in its U.S. business, that led to the ousting of Carlos Tavares as CEO.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Shailesh Kuber)
S&P Global downgraded Stellantis to 'BBB' from 'BBB+'.
Price cuts in North America and Europe, along with buyer affordability concerns, are expected to limit Stellantis's volume growth and margin expansion.
Stellantis thanked President Trump for the tariff pause and pledged to support the America First initiative by building more cars in the United States.
S&P does not expect Stellantis to absorb the cost of tariffs and anticipates the company will pass on the impact through pricing adjustments.
Stellantis provided a cautious outlook for 2025, following a slump in its U.S. business that affected its annual results.
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