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’s policies.
Author of the article:
Bloomberg News
Gabrielle Coppola
Published Jan 10, 2025 • 2 minute read
Signage outside the Stellantis Mack Assembly Plant in Detroit, Michigan, U.S., on Saturday, Feb. 19, 2022. The EPA is investigating the Department of Environment, Great Lakes, and Energy for an emissions tradeoff deal that increased emissions around the new Mack Avenue Jeep plant, after local residents filed a complaint in November alleging that the regulator violated the Civil Rights Act by failing to consider the unequal health impact on people of color when issuing the pollution permits. Photographer: Matthew Hatcher/Bloomberg Photo by Matthew Hatcher /Bloomberg (Bloomberg) — 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’s policies.
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The automaker hasn’t 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.
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“We have a couple of options” for where to build the Cherokee’s successor, Filosa told reporters at the Detroit Auto Show. “Those are things that we are assessing now.”
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 “plan B” for its Mexico production strategy if Trump follows through with the levies.
For Stellantis, freshening its outdated vehicle lineup with new models is critical to reverse a lengthy sales slide that slashed profits last year.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’s focused on recapturing market share in the US — Jeep’s largest market — 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, Illinois, which former Chief Executive Officer Carlos Tavares shuttered, causing an uproar from the United Auto Workers union. The Cherokee replacement, which hasn’t 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 US.
“We will work to generate jobs in the US,” said Filosa, who added that he has not personally spoken with the president-elect. “After the decision of Mr. Trump and his administration, we will work accordingly.”
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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