Stellantis Executive Chairman Speaks Out Against Tariffs On Vehicles Made In Mexico, Canada: 'Real Opportunity Is... 4M Cars That Are Sold In America That Don't Have Any US Content'

Stellantis NV STLA executive chairman John Elkann on Wednesday called for no tariffs to be imposed on the company’s products made in Canada and Mexico.

What Happened: Trump previously announced 25% duties on Mexico and Canada imports which are scheduled to come into effect in March. But Elkann said on Wednesday that Stellantis believes its vehicles manufactured in Canada and Mexico must be “tariff-free” provided they have U.S. content.

“We strongly believe that the real opportunity is really to try and close the loophole for 4 million cars that are sold in America that don’t have any US content,” Elkann, who leads the company in the absence of a CEO, said.

Stellantis, like Ford and General Motors, makes a proportion of its North American vehicles in Canada and Mexico.

Take By Other Automakers: Ford CEO Jim Farley said earlier this month that it will be able to manage a few weeks of tariffs but longer tariffs would have a huge impact on the industry.

"There's no question that tariffs at 25% level from Canada, Mexico, if they're protracted, would have a huge impact on our industry, with billions of dollars of industry profits wiped out and adverse effect on the US jobs as well as the entire value system in our industry. Tariffs would also mean higher prices for customers," he said.

Farley also called for more “comprehensive” tariffs that impact Asian automakers like Hyundai, Kia, and Toyota who are currently able to import vehicles into the U.S. with no "incremental tariffs."

"…if we're going to have a tariff policy…it better be comprehensive for our industry. We can't just cherry pick one place or the other because this is a bonanza for our import competitors," he said.

Stellantis Financials: The Fiat Chrysler parent reported a 17% year-on-year revenue decline to 156.9 billion Euros ($164.7 billion) for 2024. Net profit for the year plunged 70% to 5.520 billion euros, with a 61% drop in adjusted EPS to 2.48 euros.

“2024 was a very rough year,” company CFO Doug Ostermann said on Wednesday.

For FY25, Stellantis sees positive net revenue growth and industrial free cash flows. The company anticipates FY25 adjusted operating income margin in the mid-single digits.

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