Stellantis' Strategic Meeting with Trump Amid Trade Policy Changes

As the automotive industry navigates potential shifts in trade policies under President Donald Trump, Stellantis Chairman John Elkann met with Trump and administration officials on January 22, 2025. The meeting focused on the company's readiness for upcoming changes in manufacturing and trade policies, particularly in light of Trump's consideration of a 25% tariff on vehicles imported from Mexico and Canada [a1bdadac]. Elkann emphasized Stellantis' commitment to strengthening U.S. manufacturing, noting that the company operates two assembly plants in Mexico and two in Canada, which together account for 40% of its U.S. vehicle sales [a1bdadac].

This meeting comes against a backdrop of significant investment from German automakers in the U.S. market. Volkswagen Group CEO Oliver Blume recently announced a €5 billion investment in Chattanooga, Tennessee, aimed at enhancing local production capabilities [2193707a]. Meanwhile, Mercedes-Benz CEO Ola Källenius has raised concerns that tariffs could hinder growth and innovation within the automotive sector [2193707a].

The trade imbalance between Germany and the U.S. has also been a point of discussion, with German exports to the U.S. reaching €80.7 billion in the first half of 2024, while imports were only €46 billion [2193707a]. Ford and General Motors (GM) have pledged $1 million each to support Trump's inauguration, signaling their alignment with the administration's policies as they prepare for potential changes in electric vehicle (EV) regulations [917e6bd1].

Trump's inauguration speech hinted at a shift in priorities regarding electric vehicles, including the revocation of a 2021 executive order that mandated 50% EV sales by 2030 [a1bdadac]. In response, California Governor Gavin Newsom has vowed to revive state-level electric vehicle subsidies, emphasizing California's commitment to clean transportation amid the evolving federal landscape [10b8fa44].

As the automotive sector adapts to these changes, the interplay between Trump's tariff policies and the strategies of both Stellantis and German automakers will be pivotal in shaping the future of vehicle production and trade relations between the U.S. and its international partners. The upcoming discussions in Congress are expected to reflect these complexities, with significant implications for both domestic and global automotive markets [262b3ec9].