Shares in Stellantis, the automotive group behind brands including Vauxhall, Peugeot, Citroën and Fiat, slid by more than 4% in London trading on Tuesday, extending recent losses. The decline comes as investors digest fresh concerns over the impact of potential US tariffs on European car imports and a slowdown in domestic sales.
The stock, which is listed on the Milan, Paris and New York exchanges as well as being traded via depositary receipts in London, fell to around €12.50 in Milan, its lowest level in several weeks. The broader European auto sector also suffered, with the Stoxx 600 Automobiles & Parts index dropping 1.8% on the day.
Analysts pointed to a report that the Trump administration is considering fresh tariffs on European-built vehicles as a key catalyst. Stellantis, which manufactures a significant number of its models in Europe for export to the US, would be particularly exposed to such a move. 'Any escalation in trade tensions between the US and Europe is a direct headwind for Stellantis, given its transatlantic production footprint,' said a note from analysts at Deutsche Bank.
Compounding the tariff fears, Stellantis reported weaker-than-expected sales in France, Germany and Italy for the first quarter, with registrations down 6% year-on-year across its core European markets. The group has been struggling with higher inventory levels and price competition from Chinese electric vehicle makers, which are gaining market share in Europe.
For UK investors and pension holders, the slide in Stellantis shares is a reminder of the risks facing the automotive sector. Many UK pension funds hold exposure to European equities through diversified portfolios, and Stellantis is a component of the Euro Stoxx 50 index. The company's performance is also watched closely because of its Vauxhall brand, which employs thousands of workers at plants in Ellesmere Port and Luton.