Stellantis’ Kokomo Casting Plant. The company recently announced plans to reintroduce older models and turn the corner to profitability, after factors including new tariffs contributed to early-year losses. Stellantis is Indiana’s No. 21 employer, with nearly 21,000 employees. Photo from Google Maps.

News Release

MILAN, ITALY — Stellantis plans to offset a projected $1.7 billion in tariff-related costs this year by ramping up North American profitability, including relaunching models like the Jeep Cherokee and Dodge Charger, CEO Antonio Filosa said Tuesday, July 29.

Speaking in Milan, Filosa outlined a strategy that includes pushing for U.S. policy adjustments, particularly regarding vehicles produced in Canada and Mexico with significant American-made components.

Stellantis is currently in talks with U.S. officials to address how the tariff framework could better reflect cross-border integration within the North American auto supply chain.

Of the 16 million vehicles Stellantis produces for the U.S. market, half are built at domestic facilities and another 4 million are assembled in Canada and Mexico using a high proportion of U.S. parts, according to the company.

The remaining 4 million vehicles are imported from Europe and Asia, largely without American content. Filosa said Stellantis supports the broader goals of Pres. Donald Trump’s economic strategy, including the use of tariffs as a tool to bolster U.S. manufacturing and employment.

However, he emphasized the need for nuance in how tariffs are applied, especially when many foreign-assembled cars incorporate American labor and materials.

In Indiana, where Stellantis ranks as the No. 21-largest employer, the company operates three facilities in Kokomo with a combined workforce of around 6,600. These include the Indiana Transmission plant, Kokomo Transmission Plant, and Kokomo Casting Plant.

Filosa, who took over as CEO last month, announced plans to relaunch the Jeep Cherokee and internal combustion Dodge Charger later in the year. Both models had been discontinued by previous leadership. Stellantis earlier revived the Ram Hemi V8 engine in response to customer and dealer demand, a move Filosa described as a targeted corrective measure.

The Cherokee will be built in Mexico, and Stellantis aims to reduce production costs in order to absorb the impact of new tariffs. The company has already taken a $350 million hit in the year’s first half.

This financial strain comes as the automaker posted a first-half loss of $6.5 billion during the same period last year. The company cited factors including a canceled hydrogen fuel cell project, regulatory fines tied to U.S. carbon emissions, and write-downs on platform investments.

U.S. vehicle shipments fell by nearly 25% in the first half of the year as Stellantis scaled back imports from overseas plants. Revenue declined 13% to $85.7 billion, though the company projects an uptick in both revenue and cash flow in the second half.

Filosa said the executive team remains committed to making difficult but necessary decisions to return to profitable growth and stabilize financial performance.