Fiat Chrysler is developing contingency plans in case President Trump follows thru on threats to impose auto tariffs or cancels existing trade agreements like NAFTA.
Fiat Chrysler is considered one of the Detroit-3 automakers, even though it’s headquarters are in London, is incorporated in the Netherlands, and has it’s major legacy facilities in Italy. The Chrysler side of the business has headquarters in Auburn Hills. And the company makes more than 80-percent of it’s operating profits in the U-S. Half of the vehicles F-C-A sold in the U-S last year were foreign-built, with most of those coming from Canada and Mexico thru NAFTA. Analysts predict that a 25 percent tariff would boost prices and cut sharply into sales. So Fiat Chrysler is making alternate production plans in case of tariffs. The powertrain director says they’re making supply-based planning on a massive scale.