Jeep Cherokee’s comeback was entered in pencil to pivot about $1.7 billion in tariff knockout blow
Stellantis They hope to counter some of the expected tariff costs of 1.5 billion euros ($1.7 billion). This year, he said Tuesday by increasing North America’s profitability with the launch of new models like the cancelled Jeep Cherokee.
The fourth largest car manufacturer in the worldIt was created from the merger of Fiat Chrysler and PSA four and a half years ago. Peugeotdiscussing with US officials about how to mitigate the impact of tariffs on cars produced in nearby Canada and Mexico.
CEO Antonio Firosa said Stellantis “uses ” tariffs as a tool ‘duty’ for employment and US car production” in support of US President Donald Trump’s strategy.
Filosa, who was confirmed as chief executive last month, said it is pushing to have a high level of US components tariff factor factors used in vehicles made in Canada and Mexico.
Of the 16 million cars Stellantis sells in the US market, 8 million people are being built in domestic factories and another 4 million people in Canada and Mexico. Another 4 million people are imported from Europe and Asia, with virtually no US components.
In pursuit of US turnaround, Filosa has rebooted in the second half of the 2025 model, where previous management resolved this two years ago. The new Jeep Cherokee, the largest US segment for sale and popular ice dodge charger.
Earlier this year, Stellantis rebooted the Ram Hemi V8 due to dealer and customer demand for what Filosa called “quick, smart and impactful corrective action.”
The Jeep Cherokee is produced in Mexico and Filosa said it is working to reduce production costs. “Therefore, it can completely offset the tariff effects.”
Stellantis already absorbed 300 million euros ($350 million) of the 2025 tariff impact in the first half of the year, as the automaker recorded a loss of 2.3 billion euros (approximately $2.7 billion). During this period, US freight fell by almost a quarter as carmakers reduced imported vehicles produced overseas.
The manufacturers of Jeep, Chrysler, Fiat and Peugeot cars reported that they had plummeted from 3.3 billion euros (3.3 billion euros ($6.5 billion) due to cancellations due to changes in U.S. carbon emissions regulations and posting platform investments.
Stellantis said it expects net revenue to increase over the next six months compared to the first half, which saw its down 13% to 74.3 billion euros ($85.7 billion). The automaker also said cash flow would improve.
Filosa said the new management will “continue to make the tough decisions needed to reestablish profitable growth and significantly improve the results.”