Tag Archives: Stellantis

Tariffs Claim First Major Victim as American Auto Giant Files for Bankruptcy

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A major shock has hit the American auto industry. One of the country’s largest and most influential auto giants has filed for bankruptcy, catching workers, suppliers, and experts off guard. This comes after a series of steep new tariffs that have disrupted the cost and flow of car manufacturing and parts supply, putting even top companies at risk.

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The company in question is Marelli, a global auto parts supplier to Stellantis, Nissan, and Tesla. Its bankruptcy is one of the first major losses under the new tariffs.

Marelli has filed for Chapter 11 bankruptcy in the U.S. and aims to restructure over $700 million in debt. To stay afloat during this difficult time, it relies on $1.1 billion in emergency funding to maintain its operations.

If Tesla is one of Marelli’s major customers, perhaps this should not be much of a surprise. As Tesla declines, Marelli should follow to some extent. It’s not just the tariffs.

Tariffs Claim First Major Victim as American Auto Giant Files for Bankruptcy
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https://www.msn.com/en-us/money/news/tariffs-claim-first-major-victim-as-american-auto-giant-files-for-bankruptcy/ss-AA1GNXMk

BBC: Tariffs on car parts entering the US come into force

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A 25% import tax on engines, transmissions and other key car parts has come into force in the US, raising pressure on an industry finding its way through a thicket of policy changes.

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The US president has said the new tariff, along with a 25% import tax on cars that went into effect last month, is intended to push carmakers to do more manufacturing in the US.

But analysts said any immediate expansions in the US were likely to come at the expense of production elsewhere, while also leading to higher costs for the businesses – and ultimately higher prices for customers.

“American made” cars still rely on foreign-made parts — we’re screwed by these tariffs either way.

Tariffs on car parts entering the US come into force

https://www.msn.com/en-us/money/markets/tariffs-on-car-parts-entering-the-us-come-into-force/ar-AA1E5k8b

More here:

The White House says tariffs won’t make car buying more expensive. Top automakers don’t sound as sure.
Despite the White House’s statements, Ford’s top executive recently said he could not promise consumers wouldn’t pay more.

https://www.msn.com/en-us/news/other/the-white-house-says-tariffs-won-t-make-car-buying-more-expensive-top-automakers-don-t-sound-as-sure/ar-AA1E3BLQ