Stellantis, like Ford and other automakers, is moving a surplus of parts into the U.S. before tariffs on products imported into the U.S. from Mexico and Canada take effect April 2nd.
Warehouses are thus being filled with parts in anticipation of the tariffs set to be imposed as of April 2nd – barring, of course, any further postponements like we’ve already seen more than once from the White House.
Faced with uncertainty, manufacturers have no choice but to prepare for the worst. Stellantis is shipping certain automotive parts from Mexico and Canada to the United States earlier than planned. It’s also working with dealerships to expedite orders for vehicles that may be subject to tariffs starting next month.
Several analysts believe that the price of new vehicles could rise by an average of $6,000 USD, if not more.
As reported by Automotive News, Stellantis CFO Doug Ostermann said Stellantis had "worked ahead" with suppliers before the April 2nd deadline.
He explained further that “Some inventory levels—safety stock—that we normally keep at a supplier have been moved across the border to our plants. This is not our normal mode of operation, but we have taken steps to mitigate the short-term impact.”
Interestingly, Ostermann also said that Stellantis has sufficient inventory at U.S. dealerships, about 70 to 80 days' worth for most vehicles produced in Canada and Mexico. This means that price increases won’t make themselves felt for two or three months. If the U.S., Canada and Mexico come to some agreement by then and the tariffs are lifted, consumers could be spared any pain.
Stellantis could potentially be severely affected by the tariffs. It assembles Ram HD pickup truck ranges, ProMaster vans, Jeep Compasses and 6.4L Hemi V8 engines in Mexico, and Pacifica minivans and Dodge Charger Daytonas in Canada.
The company says it continues to have discussions with U.S. authorities.