Stellantis is proactively preparing for potential challenges posed by tariffs under the upcoming Trump administration. Yet, the company’s Chief Financial Officer (CFO), Doug Ostermann, emphasized the automaker’s ability to adjust operations as needed.
Speaking at Goldman Sachs’ 16th Annual Industrials and Autos Week, Ostermann outlined Stellantis’ contingency plans in light of potential 25% tariffs on goods from Mexico and Canada, as threatened by President-elect Donald Trump. He noted that Stellantis has significant production capacity in these countries but acknowledged the possibility of shifting production to plants in the United States, such as the Belvidere Assembly in Illinois, if necessary.
In addition, he asserted Stellantis’ ongoing strategy to shift production to lower-cost countries, reflecting the company’s long-term focus on cost efficiency. He addressed how the company plans to manage pricing changes, particularly in the context of potential tariff impositions.
Leadership Transition and Organizational Trust
He also pointed to challenges in rebuilding trust with key stakeholders such as suppliers, dealers, unions, and governments.
Ostermann noted that a midyear replacement for the Jeep Cherokee is expected to fill a significant gap in the automaker’s portfolio, alongside a range-extender Ram Pickup and a series of EVs. He further explains that the company has strategically invested in multi-energy platforms, which enable the production of vehicles powered by gas, electric, and hybrid technologies.
Moreover, Ostermann’s appointment as Stellantis’ CFO in October was part of a management restructuring after CFO Natalie Knight’s departure. Formerly the COO in China, he is now key to navigating the company’s challenges.
However, despite these obstacles, Ostermann is confident in Stellantis’ long-term success, citing progress in reducing excess inventory as proof of the company’s resilience.
