Stellantis is offering to help its suppliers cover U.S. tariff costs to ease the initial impact of President Donald Trump’s latest trade measures, Bloomberg reported Monday, citing a person familiar with the matter.
The automaker has proposed a program under which suppliers can apply for financial assistance to make monthly tariff payments to the U.S. government, according to the report. Marlo Vitous, head of North America purchasing at Stellantis, outlined the plan during a supplier meeting in Detroit last week.
The Group builds 57% of the vehicles it sells in the U.S. domestically, with 39% produced in Canada and Mexico and 4% elsewhere. The report said it’s unclear what share of the tariff costs the company would cover.
Stellantis shares fell as much as 5% to $9.22 on Monday, after touching a five-year low of $8.84 earlier in the session.
Last week, the company said it was temporarily laying off 900 workers across five U.S. sites and halting production at one plant each in Mexico and Canada following the announcement of new tariffs.
The company’s chief operating officer (COO) Antonio Filosa said the moves are necessary as the company evaluates the impact of tariffs. Filosa stated that the immediate layoffs and production pauses “are necessary given the current market dynamics.”
Trump last week broadened tariffs to a 10% baseline on all imports, with higher rates for certain countries. The measures came days after the administration imposed 25% duties on auto imports, sending shockwaves through the global car industry.
