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Stellantis Reshuffles North American Production to Sidestep U.S. Tariffs

Stellantis Reshuffles North American Production to Sidestep U.S. Tariffs​

New Tariff Rules Push Stellantis to Boost U.S. Content and Shift Truck Production​


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Facing a wave of new U.S. auto tariffs, Stellantis is taking aggressive steps to restructure its North American operations—shifting pickup truck production from Mexico to Michigan and ramping up efforts to source more parts from within the United States. The move aims to dodge the financial blow of President Donald Trump’s latest trade measures, which place a 25% tariff on imported vehicles and auto components not meeting updated content thresholds.

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Stellantis Reshuffles North American Production to Sidestep U.S. Tariffs

Discover how Stellantis is adapting to new U.S. tariffs by relocating production and enhancing local sourcing efforts.
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One thing Stellantis could do is build the 1.2 liter 3 cylinder in this country. While none of our domestic products currently use that engine, a few future vehicles might possibly do so. Europe is strained for capacity on that engine, so we could send them to Europe. It would be a good relations move for Stellantis. The tooling for the 1.6 liter is being installed at Dundee, MI, they might as well run the 3 cylinder version as well.

I wouldn't build the Punch transmissions here. Some European blogs are already reporting manufacturing problems. The Stellantis idea that building something much cheaper is a product improvement. The Magna and Aisin hybrid transmissions Stellantis was using are superior to the Punch hybrid transmission and worth the price. While Magna is a Canadian company they would build something in this country if there is a commitment by a domestic manufacturer. The same is probably true for Aisin. They are already building transmissions in Texas.

The CDJR brands need to offer some range extended drive trains for their smaller non-framed vehicles. The effort behind the Ramcharger is commendable, but the STLA-large based EVs need an ICE range extender if they want to move the goods off the dealers lots. The PHEV setup in the Alfa Tonale and Dodge Hornet probably won't survive the tariffs since the e-axle is built overseas. Toyota has demonstrated an alternative to that by simply installing the rear
e-motor and axle setup from their battery electric on the Crown Hybrid Max. Since the Charger and Jeep EVs use e-axles built in this country, why not use an in-house, domestically built e-axle.

There are other reasons to consider besides the tariffs for moving production from Canada. They just elected a Zero Emissions zealot as premier. Its hard to run an manufacturing facility during a rolling blackout.
 
Is HD production moving to Warren, or SHAP? Are they stopping the line at Saltillo entirely, or will the HDs run down both lines?

I wonder if it would be possible to (relatively) quickly add Pacifica and Compass production to Belvidere. (Belvidere was last set up to assemble the KL Cherokee. The Pacifica, IIRC, is based on CUSW like KL, so maybe some of the tooling is still there? Belvidere has a history of assembling very similar vehicles to the Compass, including the previous generation, and has also run more than one platform at a time, specifically MK and PF.) This could be a short-term solution to get all of the high-volume models into U.S. plants to keep the lights on through this mess while a longer term plan is developed, including where to build the new Compass if Brampton is no longer feasible.
 
As a Canadian auto sector retiree, and lifelong Mopar purchaser, I refuse to buy anything built in the states while this current Trump nonsense exists. As far as Stellantis goes, there is nothing in the current product lineup that interests me, or seems reasonably priced. I am sure I am not alone in this.
 
Americans do not care about Canadians or anybody else apparently as we are all users of the mighty nation ....it only took one person to spew one of his many spew's to change the worlds perspective....hope it works out for the land of the brave
 
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