Stellantis NV STLA will reportedly move some of its production activities into the U.S. as the company grapples with uncertainty caused by U.S. President Donald Trump‘s auto tariffs.
What Happened: The company will move production of some pickup trucks from its facility in Mexico to Michigan. Stellantis is also in talks with some of its parts suppliers to move their outputs to facilities in the U.S., which could help the company boost U.S. content in its vehicles and pay less tariffs, The Globe and Mail reported on Wednesday.
Company CFO Doug Ostermann shared the updates with investors in a call, according to the report. “As the situation evolves, we’ll need to calibrate our North American investments, footprint and employment to ensure the profitability of our company,” Ostermann said, providing no other information.
Companies can apply for rebates based on the vehicle’s content that is compliant with the terms of the USMCA, the new tariff strategy states. Ostermann shared with the investors that current U.S.-made Stellantis products have 80% USMCA-compliant content, and it could be boosted to 85%, which could help the company recover costs through rebates.
However, the report does suggest that Ostermann exercised caution about rebuilding supply chains. “Some suppliers who may have excess capacity in the United States may be able to switch relatively quickly, and other suppliers [will] take much longer,” Ostermann said, and outlined that there could be different timelines involved.
Why It Matters: News of the shift in production strategy comes in as Stellantis announced that it was suspending its earnings guidance for 2025, citing volatility and uncertainty caused by the Trump administration’s tariffs.
The company was joined by fellow Detroit-based automaker General Motors Co. GM, which also postponed its earnings call, citing the tariffs.
Stellantis also experienced falling sales in Europe, where the company is based out of, after reporting a 5.7% decline in new registrations in the region. Stellantis also reported a 14% YoY decline in Q1 revenue at the earnings call.
However, the company did announce a breakthrough in battery technology as the Dodge Charger EV in 2026 will feature a solid-state battery, in what could prove to be a boost for the Detroit-based automaker.
Price Action: STLA currently trades for $9.28 on the NYSE, according to Benzinga Pro data.
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