Stellantis Chairman John Elkann Expresses Concern Over U.S. Tariffs

Stellantis Chairman John Elkann has raised concerns over the impact of the recently imposed 25% U.S. tariffs on automobiles manufactured outside the country. Speaking on a conference call with analysts, Elkann highlighted the economic risks associated with these tariffs, emphasizing their potential to drive up vehicle prices and disrupt demand in the American automotive market.

Elkann’s comments align with a broader industry stance, as trade groups representing Stellantis, General Motors (GM), and Ford have voiced similar concerns. “(It) made a very clear statement about the dialogue ongoing with the Trump administration, and the importance of the competitiveness of the integrated North American automotive sector,” Elkann stated.

He further underscored the primary issue at hand: affordability. “But more importantly, the concern on the affordability of our products, our products made in America, and the implications on demand, on what will this uncertainty mean for demand in the United States of America.”

Following President Donald Trump’s announcement of the tariff increase, Stellantis’ Milan-listed shares saw a significant drop, hitting their lowest point since the automaker’s formation in early 2021. The company emerged from the merger of Fiat Chrysler Automobiles (FCA) and the PSA Group, making it one of the world’s largest automotive manufacturers.

Elkann, who was speaking in his capacity as CEO of Exor, the Agnelli family’s investment group, reiterated the importance of maintaining competitive pricing structures. Exor holds a major stake in Stellantis, along with several other global companies.

The impact of tariffs is also being felt at Ferrari, where Elkann serves as Chairman. The luxury automaker announced plans to raise prices on certain models in response to the increased costs associated with the tariffs.

The industry continues to monitor the evolving trade policies, as automakers brace for potential shifts in market dynamics. With affordability and demand at stake, stakeholders across the automotive sector remain engaged in discussions with policymakers to mitigate adverse effects on both manufacturers and consumers.

Source: Reuters