Stellantis says production may shift to US
Company considers options as tariffs loom
By: Eric D. Lawrence
Detroit Free Press
USA Today Network
..... Stellantis will "adjust as needed" in the face of potential tariffs that might be imposed by the incoming Trump administration, the automaker's chief financial officer said.
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In a wide-ranging conversation last week [12/04/2024] the Goldman Sachs 16th annual Industrials and Autos Week, Stellantis CFO Doug Ostermann left open the possibility that the company could shift production to "unallocated plants" in the United States, such as Belvedere Assembly in Illinois, and make other adjustments.
..... "We have available capacity in the U.S. that will allow us to adjust," eh said. "It's not ideal for us, as it won't be for other automakers."
..... President-elect Donald Trump has threatened 25% tariffs on goods from Mexico and Canada and Ostermann noted that the automaker has significant production in the two countries at "great plants" with "great cost."
..... Stellantis - a multinational company that owns Jeep, Ram, Chysler, Dodge and Flat, among others - has a stated strategy of moving more production to lower-cost countries, and Ostermann brought that up late in the conversation in discussing how it would manage changes related to pricing.
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Ostermann was speaking only days after Carlos Tavares resigned abruptly as CEO of the automaker in the face of significant sales, inventory and market-share struggles in recent months. Tavares' exit had been anticipated at the end of next year, [2025] with a search for a successor underway, but the timing was a surprise. Ostermann noted that he wasn't privy to the full scope of the discussion between Taveres and the board, but he acknowledged some disagreement on what the proprieties should be and how to run the business in the short term.
..... Another areas of division was in how the company interacts with key stakeholders, such as suppliers, dealers, union, governments and the governments in the areas where the company operates.
..... "Those are areas where I think clearly we need to build back trust," Ostermann said."