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stellantis
Ford Warns of Profit Plunge Thanks to Trump Tariffs
Ford's tariff troubles are notable because it "manufactures the most cars in the U.S. of any automaker," and yet is still "being squeezed by new trade barriers imposed by the White House," reported Bloomberg.
Jul 30, 2025
American automaker Ford on Wednesday followed in the steps of General Motors in warning that U.S. President Donald Trump's tariffs are going to take a hammer to its bottom line.
As reported by Bloomberg, Ford said that its profit could plunge by up to 36% this year as it expects to take a $2 billion hit from the president's tariffs on key inputs such as steel and aluminum, as well as taxes on car components manufactured in Canada and Mexico. News of Ford's guidance sent its stock shares diving by more than 2% in after-hours trading on Wednesday.
Bloomberg wrote that Ford's tariff troubles are notable because it "manufactures the most cars in the U.S. of any automaker," and yet is still "being squeezed by new trade barriers imposed by the White House."
Ford CFO Sherry House informed reporters during the company's quarterly earnings call that the White House was aware of the troubles the tariffs are causing U.S. automakers and she said that it "is working with us to get this right."
General Motors earlier this month also cited the Trump tariffs as a major reason why its profits fell by $3 billion the previous quarter. Making matters worse, GM said that the impact of the tariffs would be even more significant in the coming quarter when its profits could tumble by as much as $5 billion.
GM's warning came shortly after Jeep manufacturer Stellantis projected that the Trump tariffs would directly lead to $350 million in losses in the first half of 2025.
Trump made raising tariffs on foreign products a key plank of his 2024 election campaign despite the fact that he also ran on lowering inflation, and tariffs historically have led to higher, rather than lower, prices.
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Manufacturing Activity Sinks 'Sharply' as GM Blames Trump Tariffs for Profit Drop
Experts had expected a key manufacturing index number to tick upward, which makes the massive drop in July a significant and unpleasant surprise.
Jul 22, 2025
A key manufacturing activity indicator unexpectedly plunged over the last month amid warnings from American automobile giant General Motors that U.S. President Donald Trump's tariffs are swallowing its profits.
The Wall Street Journal reports that the Fifth District Survey of Manufacturing Activity's index "sank sharply" in July and fell to -20, which was a drop from the -8 number posted by the index in June. Experts surveyed by the Journal had actually expected the index number to tick upward to -6, which makes the massive drop in July a significant and unpleasant surprise.
The index is a survey of more than five dozen manufacturing firms located in the mid-Atlantic region of the United States that asks them to report activities including shipments, new orders, and employment. A monthly number below zero indicates that activity in these realms has shrunk rather than grown over the last month, and the Journal notes that the index has been registering negative numbers for five months straight.
And the month-over-month dive in manufacturing activity isn't the only signal of trouble ahead for domestic manufacturing. General Motors revealed on Tuesday that its profits took a significant dent in the past quarter thanks in part to the Trump tariffs on vital components such as steel.
In all, GM's core profits fell by $3 billion on the quarter and it projected that its third-quarter profits could drop by as much as $5 billion as more tariffs take effect. Although GM is expanding some of its manufacturing in the U.S. to mitigate some of the impact of Trump's tariffs, that likely can only go so far when big tariffs are still being levied on the imported raw materials that the company needs to build cars.
GM's warning about tariffs comes just a day after Jeep manufacturer Stellantis projected that the Trump tariffs would directly lead to $350 million in losses in the first half of 2025.
Trump made raising tariffs on foreign products a key plank of his 2024 election campaign despite the fact that he also ran on lowering inflation, as tariffs historically have led to higher, rather than lower, prices.
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UAW Touts Stellantis Vow to Reopen Belvidere Plant as Win for Workers
"The future of Illinois manufacturing depends on the power of our workforce," said Sen. Tammy Duckworth (D-Ill.)
Jan 23, 2025
The automaker Stellantis announced Wednesday that it will build the next generation Dodge Durango at its Detroit Assembly Complex and will reopen the Belvidere Assembly Plant in Illinois—two issues that the United Auto Workers union said the firm had agreed to in a 2023 union contract, but then had tried to walk back.
According to the announcement, the reopening of the Belvidere plant will return some 1,500 UAW-represented employees back to work there, and the plant will also be used to produce a new mid-sized pick up truck.
Democratic lawmakers and the UAW leadership cheered the development. In a letter released Wednesday, UAW president Shawn Fain and UAW Stellantis Department director Kevin Gotinsky wrote that the "victory is a testament to workers standing together."
On X, Sen. Tammy Duckworth (D-Ill.) wrote: "The future of Illinois manufacturing depends on the power of our workforce. Proud to see Stellantis honor their historic deal with UAW—bringing 1,500+ jobs back to their Belvidere Assembly Plant. Incredible win for Illinois." The AFL-CIO posted on X, cheering the development, as did Sen. Gary Peters (D-Mich.) and Rep. Debbie Dingell (D-Mich.).
The United Auto Workers represents unionized workers at Stellantis (formerly Chrysler), as well as General Motors and Ford. UAW-represented workers ratified a contract with the three automakers, collectively known as "the Big Three," that yielded worker wage gains in 2023.
According to the union, Stellantis agreed in the 2023 contract to reopen the Belvidere plant and to manufacture the next generation Dodge Durango in Detroit, but the company's old leadership had failed to uphold those commitments.
Former CEO Carlos Tavares, who spearheaded aggressive targets for sales and cost cuts and tangled with both the board and the union, according to Reuters, resigned in December. The letter from Fain and Gotinsky credited the union members with his exit.
"Thank you to the thousands of members and leaders who rallied, marched, filed grievances, and talked to coworkers. Your solidarity forced Carlos Tavares out as CEO of this company, and it's been a game-changer. Since Antonio Filosa has taken over as North American COO at Stellantis, we have been meeting with their team, and the difference is clear," according to the letter from Fain and Gotinsky.
The union had filed charges with the National Labor Relations Board accusing the automaker of unlawfully refusing to release information about plans to move Dodge Durango production from a Detroit factory to one outside of the United States, and also filed grievances over delays in reopening the plant in Belvidere, according to The Associated Press. Union members had threatened to strike over the issue of the Belvidere plant.
In October 2024, members of the Senate and the House of Representatives sent two separate letters to Stellantis leadership urging them to keep the company's commitments.
On Wednesday, Stellantis "also committed to a significant investment in Kokomo, announcing plans to build Phase II of the GME-T4 EVO engine beginning in 2026, reversing plans to move work out of this country. There will be no change to existing GME-T4 EVO production at the Dundee Engine Plant. Finally, the company committed to increased component production at the Toledo Machining Plant," according to a press statement from UAW.
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