Stellantis is facing uncertainty regarding potential tariffs proposed by U.S. President Donald Trump, which could significantly impact its profits. The Jeep-maker is already grappling with the aftermath of what it described as a challenging 2024.
The multinational group comprising French, Italian, and American interests is advocating against the implementation of tariffs by the Trump administration. These tariffs could disproportionately affect automakers producing the majority of their vehicles in the U.S., Mexico, and Canada, with the potential to take effect in early March.
During a call with analysts, Stellantis Chairman John Elkann emphasized the importance of closing loopholes allowing millions of vehicles into the country without U.S. content requirements. Elkann stated that products manufactured in Mexico and Canada should remain exempt from tariffs to boost job creation and manufacturing within the U.S.
Elkann acknowledged the disappointing performance of 2024, noting the company's ongoing recovery from declining U.S. sales and the quest for a new CEO.
The auto industry in Detroit has been actively campaigning for tariffs targeting automakers importing vehicles from Asia or Europe to the U.S., advocating for preferences for manufacturers with production bases in North America.
If 25% tariffs were imposed on imports from Canada and Mexico, Stellantis, currently producing 39% of its North American vehicles in these countries, would be significantly impacted. Conversely, GM and Ford Motor have varying production rates in Mexico or Canada, as highlighted in a Barclays report.
General Motors executives are closely monitoring the situation, assessing strategies to mitigate potential tariff-induced costs, including plant relocation. GM's Chief Financial Officer Paul Jacobson discussed the implications with analysts in February.