Tariffs imposed by the U.S. government are significantly impacting automakers like GM, Ford, and Stellantis, threatening union profit-sharing checks and bonuses due to rising costs and reduced earnings. Stellantis reported a 9% drop in Q1 shipments, with notable declines in North America and Europe, and is considering restructuring Maserati. Meanwhile, the EU and China are negotiating to replace EV tariffs with minimum pricing. Lucid Motors and Volkswagen's Skanya are acquiring assets from bankrupt startups Nikola and Northfolk. Stellantis is also enabling EV conversions for combustion vans in France, while Daimler Buses offers battery pack remanufacturing to extend electric bus life.
Topics:us tariffs impactunion profit sharingstellantis q1 shipmentsmaserati restructuringeu china ev tariff talkslucid nikola asset acquisitionbankrupt ev startupsev conversionsbattery pack remanufacturingautomotive industry economics
- Tariffs Could Cost Automakers $107 Billion - Tariffs Threaten UAW Profit Sharing Checks - EU and China Negotiating to End EU Car Tariffs - China Delays Approval of BYD and Geely Expansion - Lucid Scoops Up Nikola Assets - Scania Acquires Northvolt’s Truck Battery Unit - Stellantis’ Q1 Shipments Slide 9% - Easter Jeep Safari Concepts Revealed - Stellantis Converts ICE Vans into EVs - Daimler Remanufacturing eCitaro Bus Batteries
"...arbon fiber Jeep Wrangler and accessories for the Gladiator that make it look like a Safari vehicle. People t..."
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Speaker 1: This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry. And here's a quick update on
the impact of Trump's tariffs on the auto industry. According
to a new study by the Center for Automotive Research, they'll lead to increased cost of one hundred and seven billion dollars for all automakers in the US, and for the Detroit three alone, the cost is estimated at nearly forty two billion dollars. And if General Motors, Ford, and
Stilantis are hit hard by the tariffs, it's going to put a big dent in union workers profit sharing checks, which are based on the automaker's earnings. Last year, GM
paid out up to fourteen five hundred dollars to union workers, Ford workers received up to ten thousand, two hundred dollars, and Stilantis was at three thousand, seven hundred bucks because of a big drop off in profits. But according to
an estimate by the Anderson Economic the tariffs could wipe out five billion dollars in operating profits in North America for the Detroit automakers this year, and that could cost workers one thousand to five thousand dollars in profit sharing.
There's even a scenario if the automaker's earnings fall below a certain level that workers won't receive any profit sharing.
Anderson says that salaried workers and executives will also see reduction in bonuses because those are tied to the company's earnings as well. And In other tariff news, the European
Union and China are in talks to remove the tariffs that the EU placed on Chinese made EV's last year.
The two sides said that they are looking into setting minimum prices on Chinese ev imports instead.
Speaker 2: Of the tariffs.
Speaker 1: Last year, the EU increased tariffs on Chinese made evs by as much as forty five percent because it said they benefited from government subsidies that put EU automakers at a competitive disadvantage. But if a change is made, the
EU's Trade Commissioner says that the minimum prices need to be as effective and as enforceable as the tariffs, and the economic uncertainty around the terrace is delaying byd and Gili's expansion into Mexico and Brazil. In February, Gili and
Renault reached a deal for Jili to use Renault's production facilities in Brazil and take a stake in Renault's business in the country, and two years ago BYD announced plans to open a plant in Mexico, but Reuter's reports that the Chinese government has delayed approval of those plans because it's concerned Trump's tariffs will create global economic uncertainty that will hurt those investments, and the government is also worried that there could be technology transfer risks. Lucid Motors announced
that it's going to scoop up some of Nichola's facilities and assets. In February, Nikola filed for bankruptcy and set
it planned to sell off all of its assets to pay off its debts. Now, Lucid has reached an agreement
with Nikola to acquire some of those facilities and assets, which are in Arizona, but it doesn't include Nikola's business or its technology related to its hydrogen fuel cell trucks.
Speaker 2: Lucid is also offering.
Speaker 1: More than three hundred former Nicola workers employment in positions including engineering, software assembly, vehicle testing, and warehouse support. But
Loocid isn't the only company buying up assets from a bankrupt startup truck maker Skanya, which is part of the Volkswagen Group, announced that it's acquiring battery maker Northfolks, business that makes battery packs for heavy industry. Nor filed for
bankruptcy last month because it struggled to ramp up mass production of its batteries.
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Speaker 1: Stillantis reported its global vehicle shipments for the first quarter of the year, and they dropped nine percent to a little over.
Speaker 2: One point two million units.
Speaker 1: The biggest contributors to that were an eight percent slide in Europe and we think more importantly, a twenty percent drop in North America. The company blames extended holiday downtime
and ramp up of the new Ram heavy duty truck for its shipments falling off in North America, but we would add it's also been dealing with high inventory levels, which is going to impact how many vehicles you can deliver.
Speaker 2: To your dealers.
Speaker 1: Stillantis thinks it was encouraging that retail orders in March were the highest they've been since July of twenty twenty three, but that could have more to do with consumers rushing out to get a new vehicle before the tariffs start kicking in.
Speaker 2: So this is something we'll.
Speaker 1: Be keeping an eye on because North America is where Stilantis makes a good portion of its money, and if declines like this continue to happen, then twenty twenty five is going to be a rough financial year for the company.
And on top of that, it's looking more and more like Maserati is headed for some kind of major restructuring.
Stalantis already hired consultancy McKinsey to help it assess options for both Maserati and Alfa Romeo, and in the first quarter of the year, Maserati only shipped one thousand, seven hundred vehicles. That's for the entire world, and was a
drop of forty eight percent compared to last year. Let's
stick with Stilantis, but on a lighter note, Jeep revealed that lineup of concepts that it's taking to its annual Easter Jeep Safari. Like so many past years, the vehicles
are tricked out with custom paint and graphics, big off road tires, light bars and winches, and a couple of unique things that caught our eye include an extended carbon fiber Jeep Wrangler and accessories for the Gladiator that make it look like a Safari vehicle. People that attend the
Easter Jeep Safari, which kicks off tomorrow, can get a chance to ride in these concepts plus much more.
Speaker 2: And in one last bit.
Speaker 1: Of Stilantis news, it's teaming up with a company named Quinomic to allow owners of combustion powered vans in France to convert them to EV. Quinomic purchases all the EV
components from Stilantis and then completes the conversion.
Speaker 2: For the customer.
Speaker 1: This would be cheaper than buying a brand new electric van and could lower maintenance costs compared to the IC powertrain, as well as open up access to any emission free zones. Plus,
everything that gets ripped out of the van won't go to waste. Stillantis is going to recover the engine, transmission,
fuel tank and exhaust, which will be rebuilt or sold as used to customers for less than what a new part would cost. Daimler Buses is taking a similar path
as well. It's now offering to remanufacture or replace battery
packs in the Eciero bus, which has been out on road since twenty eighteen, and starting next year, it's also going to start selling packs for those older buses that have its newest cell chemistry and provide more range.
Speaker 2: Daimler says the.
Speaker 1: Idea is to help get the longest possible life out of an electric bus, just like a diesel one. But
that brings us to the end of today's show and this week, I hope that you have a great weekend.
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