Stellantis NV, the owner of Jeep, has paused key production decisions as it awaits clarity on President-elect Donald Trump’s policies. Among the decisions is the location for producing the replacement for the Jeep Cherokee midsize SUV, which ended production in 2023. This critical decision hinges on potential tariffs or policy changes under the new administration, according to Antonio Filosa, Stellantis’ North America head and global Jeep brand leader.
“We have a couple of options for where to build the Cherokee’s successor,” Filosa stated at the Detroit Auto Show. “Those are things that we are assessing now.”
Policy Uncertainty Influences Automakers
The automotive industry, including players like Tesla and Mazda, has been reevaluating production plans in light of Trump’s proposed tariffs on goods from Mexico, Canada, and China. Mazda recently indicated it was considering a “plan B” for its Mexico production strategy should these tariffs be implemented.
For Stellantis, revitalising its vehicle lineup is essential to recovering from a prolonged sales decline that impacted profits last year. Filosa emphasized his focus on recapturing U.S. market share, Jeep’s largest market. To support this effort, Stellantis has reduced vehicle prices and provided dealers with additional incentives to attract retail buyers.
Jeep Cherokee’s Future Production
The Jeep Cherokee was previously manufactured at the Belvidere, Illinois, plant, which former CEO Carlos Tavares shut down, leading to criticism from the United Auto Workers union. The upcoming Cherokee replacement, a hybrid model based on a platform currently produced in Mexico and Canada, is part of Stellantis’ strategy to align with market trends and government policies.
“We will work to generate jobs in the U.S.,” Filosa stated, while acknowledging he has not yet communicated directly with the president-elect. “After the decision of Mr. Trump and his administration, we will work accordingly.”
Leadership Dynamics
Filosa, who sits on Stellantis’ executive committee led by chairman John Elkann, is among the top contenders for the CEO position following Tavares’ departure in November. His leadership and focus on strategic decisions place him at the forefront of the company’s efforts to navigate an uncertain policy environment and strengthen its market position.
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