Stellantis Pauses Key Decisions, Awaits Trump Policies
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A top executive at Jeep-owner Stellantis NV said some key production decisions are on hold while the automaker awaits clarity on President-elect Donald Trump鈥檚 policies.
The automaker hasn鈥檛 decided where to build certain new vehicles such as the replacement for the Jeep Cherokee midsize SUV, which ceased production in the key segment in 2023, said Antonio Filosa, who runs the North America operations for Stellantis and leads the Jeep brand globally. That decision will be influenced by potential tariffs or other policy changes under Trump.
鈥淲e have a couple of options鈥 for where to build the Cherokee鈥檚 successor, Filosa told reporters at the Detroit Auto Show. 鈥淭hose are things that we are assessing now.鈥
Automakers including Tesla Inc. and BYD Co. have been reconsidering plans since before the US election, with Trump threatening new or expanded tariffs on goods from Mexico, Canada and China. Mazda Motor Corp. said last month that it was weighing an undisclosed 鈥減lan B鈥 for its Mexico production strategy if Trump follows through with the levies.
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For Stellantis, freshening its outdated vehicle lineup with new models is critical to reverse a lengthy sales slide that slashed profits last year. Filosa said he鈥檚 focused on recapturing market share in the U.S. 鈥 Jeep鈥檚 largest market 鈥 now that the company has largely brought down bloated inventories. The carmaker has already lowered prices to lure more retail buyers and given dealers additional incentives to help move metal.
The Jeep Cherokee SUV was previously built at a plant in Belvidere, Ill., which former CEO Carlos Tavares shuttered, causing an uproar from the United Auto Workers union. The Cherokee replacement, which hasn鈥檛 been named yet but will be a hybrid, is based on a vehicle platform currently made at plants in Mexico and Canada. Filosa said Stellantis is working on many different scenarios, indicating the model could be made elsewhere, including the U.S.
鈥淲e will work to generate jobs in the U.S.,鈥 said Filosa, who added that he has not personally spoken with the president-elect. 鈥淎fter the decision of Mr. Trump and his administration, we will work accordingly.鈥
Filosa is part of an executive committee led by chairman John Elkann charged with running the automaker after Tavares was ousted by the board in November. Filosa is seen as being among the early front-runners for the top post.
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