Stellantis faces uncertainty around tariffs promised by US President Donald Trump that could significantly reduce its profits, while the Jeep-maker is already struggling to recover from what it called a “rough” 2024.
The Franco-Italian-US group argued that Trump's administration should avoid implementing tariffs that would disproportionately hit carmakers that build most of their vehicles in the US, including the 25% duties on Mexico and Canada that are poised to go into effect in early March.
“The real opportunity for the administration to really boost jobs in America and manufacturing opportunities and investments is by closing the loophole that allows about four million vehicles into the country” with no US content requirements, Stellantis chair John Elkann said on Wednesday on a call with analysts, adding that products built in Mexico and Canada should “remain tariff-free”.
The company earlier on Wednesday reported full-year results for 2024, and gave a cautious outlook for the year ahead as it recovers from slumping US sales and searches for its next CEO.
“2024 ... is a year we are not proud of,” said Elkann, who is steering the company while it is seeking a new CEO.
Detroit's auto executives have publicly and privately lobbied for tariffs directed at carmakers who import vehicles from Asia or Europe into the US, as opposed to carmakers who have anchored their production in North America.
Elkann's argument echoes one from Ford CEO Jim Farley, who recently called the Canadian and Mexico tariffs “a bonanza for our import competitors”, and urged Trump to implement more comprehensive tariffs.
If 25% tariffs were implemented on imports from Canada and Mexico, Elkann's company would be among the most affected. Stellantis makes 39% of its North American vehicles in Mexico or Canada, while General Motors makes 36% there and Ford makes 18%, according to a November report from Barclays.
GM executives have said they are moving more inventory across borders ahead of tariffs potentially hitting and are evaluating other actions to mitigate costs on the business.
“If they become permanent, then there's a whole bunch of different things that you have to think about in terms of, where do you allocate plants, and do you move plants, etc,” GM's CFO Paul Jacobson told analysts in February.
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