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Tariff Impact on Stellantis - Windsor, Saltillo, Brampton, and Toluca + Model Impact

cygnus

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Model by Model -

Ram HD - was never really a strong seller compared to Ford HD and GM HD trucks. The only of the Big 3 to build their HD truck in Mexico. Bring to the HD trucks home to Belvidere!!!!
Next generation Compass - profit negligible, Brampton will essentially be put on ice. No business case to build Compass at Brampton, doesn't justify cost.
Charger - huge impact to Windsor, not good. Will most likely direct all Hemi production to SHAP/Ram 1500 instead. No justification to put Hemi into Charger with 25% tariff, more profit if you put it into trucks.
Pacifica - huge impact to Windsor, not good. Probably the one vehicle impacted by tariffs that will negatively impact STLA profit by a couple hundred million.
Jeep Recon - DOA, built in Toluca. Will never be competitive vs other EVs because of the tariffs. Should probably cancel the program.
Jeep Wagoneer S - DOA, built in Toluca. Will never be competitive vs other EVs because of the tariffs. Should probably cancel the program.
Jeep Cherokee - DOA, built in Toluca.
 
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They'll ride it out, I see some dealers are already discounting the EV charger by $35,000 so obviously it has some cushion built into it, or will in time. Thats if the tariff tax even sticks around, probably wont
 
Model by Model -

Ram HD - was never really a strong seller compared to Ford HD and GM HD trucks. The only of the Big 3 to build their HD truck in Mexico. Bring to the HD trucks home to Belvidere!!!!
Next generation Compass - profit negligible, Brampton will essentially be put on ice. No business case to build Compass at Brampton, doesn't justify cost.
Charger - huge impact to Windsor, not good. Will most likely direct all Hemi production to SHAP/Ram 1500 instead. No justification to put Hemi into Charger with 25% tariff, more profit if you put it into trucks.
Pacifica - huge impact to Windsor, not good. Probably the one vehicle impacted by tariffs that will negatively impact STLA profit by a couple hundred million.
Jeep Recon - DOA, built in Toluca. Will never be competitive vs other EVs because of the tariffs. Should probably cancel the program.
Jeep Wagoneer S - DOA, built in Toluca. Will never be competitive vs other EVs because of the tariffs. Should probably cancel the program.
Jeep Cherokee - DOA, built in Toluca.
The Recon and Wagoneer S are intended for global sales. Jeep had better worry more about the German economy tanking because of high energy costs and also taking the rest of the EU with it. Part of the reason some models are built in Mexico is because many countries have tariffs against the USA, but not Mexico. The EU and Mercosur exempt Mexico from their tariffs.

Stellantis is a global company selling many brands. They build and sell products in many countries. A strictly USA focus declaring products DOA overlooks the big picture.
 
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Also, there is no such thing as a global vehicle / global automaker insofar the Compass is the only global vehicle and manufacturing is done on two different continents. The success of that vehicle in each region is self-contained - the Compass in the US does ok, but not great, compared to its US competitors. It is negligible for US profits - it produces few, if any, profit for US Stellantis operations.

Toyota (the smartest guys in the room), ONCE AGAIN, is correct - "Akio Toyoda says size not solution in warning about auto industry consolidation" / Akio Toyoda says size not solution in warning about auto industry consolidation

Ask yourself - have US OPERATIONS, Post-Stellantis merger, really benefitted from the merger in any way?

Absolutely not.

The concept of a global automaker is vastly overhyped and overblown. Just sell a million cars a year in the US at a good price/value/dealership experience, and the rest will take care of itself.
 
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