Two major automakers, Nissan and Stellantis (the parent company of Chrysler, Dodge, Jeep, and Ram), are bracing for potential financial shocks if President Trump’s proposed tariffs come into effect. The levies on goods from Canada and Mexico could increase production costs, raise prices for consumers, and disrupt supply chains.
Nissan, which sold over 300,000 Mexican-made cars in the US last year, is particularly vulnerable to the impact of tariffs. The company has been struggling with declining sales and is already cutting thousands of jobs as part of its turnaround plan. Its CEO, Makoto Uchida, warned that a tariff of 25% could have a “huge impact” on profit.
Stellantis, which makes vehicles like Chrysler, Dodge, and Jeep, is also facing significant challenges. The company’s sales plummeted by 70% in 2024, and its chairman has resigned. Stellantis’ CEO, John Elkann, acknowledged that tariffs could make a turnaround harder for the company.
While Nissan and Stellantis are the most likely to be affected, other automakers like General Motors, Ford, and Volkswagen could also feel the pinch. G.M.’s sales have been growing in North America, but it is still reliant on Mexican plants and suppliers for parts. Ford’s CEO, Jim Farley, warned that tariffs would “blow a hole” in the US auto industry.
The proposed tariffs could raise prices by $1,000 to $4,000 per vehicle and force manufacturers to cut jobs and adjust production. Nissan has already identified Japan as a potential alternative location for its Mexican-made models, but this move may not be enough to mitigate the impact of tariffs.
Source: https://www.nytimes.com/2025/03/03/business/carmakers-nissan-stellantis-tariffs.html