The 25% tariffs on imported cars that came into effect on Thursday have shaken the global automobile industry, forcing major carmakers into swift, divergent responses.
As the new levies threaten to reshape supply chains, pricing models, and employment, companies from Stellantis to Hyundai are taking action to shield profits and customers.
With tariffs on foreign-assembled cars now active, and those on imported parts set to begin May 3, automakers are racing to manage the costs.
Some have opted to idle production lines, others are offering deep discounts, or exploring domestic manufacturing expansions.
Share prices of most auto manufacturers remained in the red on Thursday and during US pre-market hours on Friday.
Invezz takes a look at the various strategies being adopted by auto manufacturers to deal with the disruptions.
Stellantis suspends plants, will temporarily lay off 900 workers
Stellantis, the owner of Jeep, Dodge, Ram, and Chrysler, announced it would temporarily shut down two assembly plants — one in Windsor, Ontario, and another in Toluca, Mexico — in response to the tariffs.
The Windsor plant, which manufactures the Chrysler Pacifica and Dodge Charger, will be idle for two weeks.
The Toluca facility, where the Jeep Compass and Wagoneer S are assembled, will be out of operation from April 7 through the end of the month.
Stellantis said the disruption would force it to lay off around 900 workers at powertrain and stamping plants in Indiana and Michigan.
“We continue to assess the US tariffs on imported vehicles and will remain engaged with the US government on these policies,” a Stellantis spokesperson told MT Newswires.
Stellantis shares were down over 7% in premarket trading on Friday.
Ford’s ‘From America for America’ discount to offer employee pricing to customers
In contrast, Ford has taken a more market-facing approach by leaning on its inventory to absorb the cost pressure.
The Michigan-based automaker has launched a program tentatively called “From America for America,” reportedly offering its employee pricing, traditionally reserved for Ford staff, to all customers nationwide.
While the company has yet to officially announce the plan, Reuters reports that discounts have been in effect since Thursday.
This move helps Ford distinguish itself from competitors that are raising prices to offset tariff costs.
Ford’s position is relatively advantageous. It manufactures roughly 80% of the vehicles it sells in the United States within the country, offering a greater buffer against tariffs than rivals more reliant on imports.
However, the company still faces looming cost increases from the May 3 tariffs on parts.
The discount strategy also aligns with the “Made in America” message popular with the Trump administration, which announced the sweeping duties last week in a push to bring manufacturing back to US soil.
The share price of Ford was down by 3.67% during premarket on Friday.
Source: CNN
Volkswagen to introduce an import fee on vehicles sold in the US
Volkswagen has taken a different route, signalling to its US dealers that price increases are on the horizon.
In an April 1 memo to dealers, seen by The New York Times, the German carmaker said it would introduce a new import fee on its US vehicles later this month.
It has also paused rail shipments of cars from Mexico, although maritime shipments continue, and instructed dealers to hold tariff-affected vehicles at ports until further notice.
The company said the final pricing changes would be confirmed by mid-April.
Vehicles assembled in the US, like the Volkswagen Atlas and ID.4 in Chattanooga, Tennessee, are not immune to cost pressures.
Both rely on imported parts that will be subject to the upcoming duties.
In a statement, Volkswagen confirmed it had sent the memo to dealers because it wanted to be “very transparent about navigating through this time of uncertainty.”
“We have our dealers’ and customers’ best interest at heart, and once we have quantified the impact on the business we will share our strategy with our dealers,” the company said.
Volkswagen’s share price was down by more than 5% on Friday.
Source: Statista
GM boosts production of trucks in Indiana
General Motors is responding to the tariff shock by boosting domestic production.
The company plans to increase the output of its light-duty trucks — Chevrolet Silverado and GMC Sierra — at its Fort Wayne, Indiana, plant.
The move is part of a broader strategy GM CEO Mary Barra hinted at in January, suggesting that increased US capacity could offset risk from tariffs on vehicles built in Mexico and Canada.
To facilitate the ramp-up, GM will halt production at the Fort Wayne facility between April 22 and 25.
The plant expects to add between 225 and 250 jobs and bring in several hundred temporary workers, according to internal communication with United Auto Workers.
Local union officials said additional overtime days may also be scheduled to meet the new production goals.
The GM share price was down by more than 5% during pre-market trading on Friday.
Hyundai cautions on potential price hikes
Hyundai Motor Company also flagged the likelihood of vehicle price increases.
In a note to dealers, Hyundai and Genesis Motor North America CEO Randy Parker warned that pricing was no longer guaranteed for vehicles wholesaled after April 2.
Parker acknowledged that the company’s reliance on imports from Mexico and Canada was relatively low, and that Hyundai had “firmly established” investments in the US.
However, the Korean automaker said it continues to monitor policy developments and review strategies to maintain profitability.
No official pricing changes have been announced yet, but company officials in Seoul said they are “closely reviewing” their options.
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