Stellantis pledges more US cars, thanks Trump for 1-month tariff exemption

The White House on Wednesday said Trump would exempt automakers from his punishing 25 per cent tariffs on the two countries for one month as long as they comply with existing free trade rules

Automaker Stellantis said on Thursday it shared US President Donald Trump's goal of building more cars in the United States, as it thanked him for granting a one-month exemption from tariffs on Canada and Mexico.  "We thank President Trump for the decision," Stellantis said in a statement, after the White House said on Wednesday Trump would exempt automakers from his 25 per cent tariffs on the two countries for one month as long as they comply with existing free trade rules.  "We share the President's objective to build more American cars and create lasting American jobs. We look forward to working with him and his team," Stellantis said in a statement.Its Milan-listed shares were up 3.4 per cent in European early trading.  Earlier this week the shares hit 10.84 euros, their lowest since Stellantis was created in early 2021 from the merger of Fiat Chrysler and Peugeot owner PSA.The company, which at the start of Trump's presidency in January had announced investments at its US operations, said it strongly supported "his determination to enable the American automotive sector to thrive".  Besides its US plants, Stellantis operates facilities in Mexico and Canada. The company imports from Mexico and Canada around 40 per cent of the vehicles it sells in the US, according to analyst estimates.  Falling sales and bloating inventories in the US, traditionally Stellantis' most profitable market, cost the group a 64 per cent operating profit drop and a 6 billion euro ($6.5 billion)cash burn last year.  The group is currently steered by Chairman John Elkann as Stellantis searches for a new chief executive after poor performance led to the exit of CEO Carlos Tavares in December.  Elkann is the scion of Italy's Agnelli family, which is Stellantis' single largest investor through its investment holding Exor. He met Trump in Washington as the USpresident was starting his term in office. 

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