A recent report from a notable investment bank says newly imposed 25% tariffs on imported vehicles and components could decimate the 2035 earnings of European automaker Stellantis by as much as 75%. The automaker currently relies heavily on North American factories outside the US for that respective market, which contributes to a massive portion of its annual sales.
The impact of the Trump administration’s newly imposed 25% tariffs continues to echo throughout the global automotive industry. We are just starting to get a taste of their potential impact on many foreign OEMs, even those who assemble vehicles sold in the US in North America.
Starting April 3rd, 2025, the Trump administration plans to impose 25% tariffs on all cars and light trucks assembled outside the US and on all foreign auto parts. Still, the US government is extending the exemption to parts from Canada and Mexico under the USMCA free trade agreement until May 3rd.
Thus, many foreign automakers, like Stellantis, are staring down the barrel of a devastating earnings year, even though many of its vehicles sold in the US aren’t even built in Europe but in Canada and Mexico. A new report states that Stellantis’ 2025 earnings could stumble as far down as 75%, potentially putting the European auto conglomerate into a dire financial situation if nothing changes.
Stellantis’ 2025 earnings face huge hurdle from US tariffs
As Automotive News Europe shared, the report from investment bank Jeffries outlined a trying earnings year for Stellantis. The bank pointed out that Stellantis’ US sales rely heavily on vehicles assembled at facilities in Canada and Mexico, in addition to approximately 58,000 additional vehicles imported from Europe in 2024. This includes marques like Maserati, Alfa Romeo, and Jeep.
Based on Stellantis’ 2024 financial and vehicle sales results, Jeffries stated that the incoming tariffs would have cost the company $7.1 billion in earnings and estimates its earnings before interest and taxes (EBIT) will be $9.3 billion.
Stellantis was already on shaky ground before the threat of tariff imports as the automaker’s 2024 EBIT tumbled by 64% after a September profit warning that led to the resignation of outspoken and many times dubious CEO Carlos Tavares. Company chairman John Elkann has taken over in the interim while Stellantis looks to announce Tavares’ successor in the first half of this year.
A significant threat to earnings will undoubtedly play a role in whom Stellantis selects to take the helm and navigate a global vehicle market that is becoming more cut-throat and competitive (with a dash of nationalism) every day, stoked by Trump and his Harem Guard Elon Musk.
Aside from manufacturing footprints in Europe, Mexico, and Canada, Stellantis operates facilities on US soil, contributing to roughly 61% of its branded vehicles sold there. However, Jeffries pointed out that those sites are significantly underutilized (52%) due to declining sales rates among US consumers.
Stellantis could pivot production from Mexico and Canada to the US if necessary and utilize a current build capacity of 1.3 million vehicles to avoid tariffs. Still, a transition of that scale is more easily said than done. During a recent call with analysts, Elkann spoke about looming tariffs and their effect on earnings, as well as the entire American Automotive Policy Council, of which Stellantis is a member. He reiterated the message delivered by the council:
(It) made a very clear statement about the dialogue ongoing with the Trump administration, and the importance of the competitiveness of the integrated North American automotive sector. But more importantly, the concern on the affordability of our products, our products made in America, and the implications on demand, on what will this uncertainty mean for demand in the United States of America.
Elkann relayed a commitment to the US administration’s vision to bring more work to the US but wants to ensure those measures don’t necessitate automakers raising MSRPs to remain competitive (and not go bankrupt in the process).
Stellantis’ stock is its lowest in years following the tariff announcement, so whoever takes over as CEO will have their work cut out for them in 2025 and beyond.
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In a world where personal mobility devices are getting sleeker and more compact, Cocoa Motors has unveiled the WALKCAR 2, a device that might just make you question the need for walking altogether. Imagine a laptop-sized gadget that lets you glide through the streets or mall with zero effort. It sounds like something straight out of a sci-fi movie, right?
I promise this isn’t an April Fools joke.
The WALKCAR 2 is touted as the world’s smallest portable mobility vehicle, weighing in at a mere 2.9 kg (6.4 lbs) and roughly the size of a laptop. This ultra-lightweight design means you can literally carry your “car” around in a backpack. Forget parking woes – just tuck it under your arm and go!
But don’t let its diminutive size fool you. The standard WALKCAR 2 model boasts a top speed of 10 km/h (6.2 mph) and a cruising range of 7 km (4.3 miles) on a single charge. Need a bit more oomph? The WALKCAR 2 Pro version ups the ante with a top speed of 15 km/h (9.3 mph) and an 8 km (5-mile) range. The two models feature 380W and 460W of power, respectively.
Both models can tackle inclines—10 degrees for the standard and 12 degrees for the Pro—making hilly commutes a breeze.
Operating the WALKCAR 2 is designed to be an intuitive process controlled simply by shifting your weight:
To speed up, riders press down with the toes of both feet to accelerate. The longer you press, the faster you go, up to the device’s maximum speed. To slow down, lift the toe of either foot slightly to decelerate. Continue this motion to come to a complete stop.
Turning is accomplished by shifting your weight by bending your knees slightly and leaning in the direction you want to turn. The device responds to your center of gravity, allowing for smooth navigation.
It’s said to feel like surfing the pavement. And compared to alternatives like e-bikes, scooters, or skateboards, there’s no handlebars or remote controls, just you and your balance.
Given its compact form, you might expect a bumpy ride, but Cocoa Motors built an innovative suspension system. The WALKCAR 2 features a “2D suspension” design that absorbs vertical and longitudinal vibrations, ensuring a smoother ride over common urban obstacles.
The WALKCAR 2 Pro takes it a step further with “3D suspension technology”, absorbing vibrations in all directions—vertically, longitudinally, and laterally. This means enhanced stability even on rough or uneven surfaces.
To recharge, a laptop-style charger can fill the battery 80% of the way in just 30 minutes, with a full charge taking one hour. The 68 Wh battery is likely compliant with nearly all major international airlines, meaning it could make for some slick airport transportation.
The WALKCAR 2 is priced at US $1,299 while the Pro version carries a higher price tag of $1,499. Both models come in four color options of Sonic Yellow, Celeste Blue, Sand Beige, and Sumi Ink Black. Shipping should start this month with deliveries continuing throughout April and May.
Electrek’s Take
Yeah, it’s pretty ridiculous. But that’s what also makes it so awesome. And since I’ve never shied away from testing ridiculous forms of transportation, it sounds right up my alley.
Of course, I’m also a daily runner and rarely miss my 10k step goal, so I’m not sure I’m exactly the intended audience here.
I sure hope this doesn’t truly lead to a Wall-E future of adults no longer using their legs, but I can see the benefit of an extremely portable device that can whisk someone around at 9 mph using hardware barely larger than a bathroom scale.
Of course, what that means for your actual bathroom scale, well that’s for you to consider.
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China is dominating the global EV market, and according to Rivian’s (RIVN) CEO RJ Scaringe, this didn’t happen by accident. After squeezing global automakers out of their home market, Chinese EV makers are quickly expanding overseas. Scaringe explained why China is leading the shift and what the US can do to keep pace.
Rivian CEO explains why China is leading with EVs
During a recent fireside chat with Rishi Dhall, VP of NVIDIA’s automotive business, Scaringe pointed out that only 8% of new vehicle sales in the US last year were electric.
In comparison, EVs accounted for 45% of all car sales in China last year. That’s a massive difference. China is nearly six times ahead of the US in terms of EV adoption.
When asked about China’s innovation happening at “lightning speed” with new models, advanced battery tech, and much lower EV prices, Rivian’s CEO explained how companies in the US can learn from them.
One of the biggest reasons is the lack of options in the US. Scaringe says there are only “one of two great, high compelling choices” under $50,000. One of those is Tesla, with the Model Y and Model 3. This is evident from Tesla’s “extreme” market share over the past few years.
Although Tesla vehicles are great, there are still hundreds more choices for gas-powered cars, with different prices, brands, features, and more.
Scaringe says the US needs to offer many more EVs to keep up with China. Rivian currently sells the R1S SUV and R1T electric pickup, but these are flagship products that cost over $70,000 each and have a relatively small market.
What role will Rivian play?
Rivian’s next product, R2, “opens that up dramatically.” The midsize R2 SUV will start at around $45,000, or nearly half the R1S and R1T.
Scaringe explained that the R2 takes “the magic of what is a Rivian at that higher price and puts it into a slightly smaller package.”
Although Rivian’s CEO promises it’s the “coolest vehicle,” the US will need more than just that for it to keep pace. We need R2 to be successful, and we need another “10, 15, 20 other options” for EV penetration to really grow in the US.
After the difference in labor costs fades, Scaringe explained, what we are left with is how the vehicles compare in terms of features, content, and other tech advantages.
In the US, two companies, Rivian and Tesla, have “redefined the network architecture” with vertically integrated tech stacks. In China, many are doing it from the ground up.
Since many automakers in the West source sensors and computers from several suppliers, it is nearly impossible to get them to work in sync, let alone update.
To be competitive, “you have to have the plumbing right,” Scaringe said, referring to vertically integrating the technology. Rivian already has one major global OEM, Volkswagen, planning to use its software in its next-gen EVs. Rivian and VW launched a joint venture worth up to $5.8 billion in November.
In the meantime, Rivian is expanding its Normal, IL plant as it prepares to launch R2. The midsize platform is still on track to launch in 2026.
Once the upgrades are complete, Rivian will be able to produce around 215,000 vehicles annually, up from around 150,000. Once its new EV plant in Georgia is up and running, which is expected in 2028, Rivian expects to add another 400,000 units to its annual production capacity.
R2 is just the start for Rivian, with the R3 and tri-motor R3X launching shortly after. Rivian will sell the R2 overseas in places like Europe as it expands the brand globally.
Source: NVIDIA
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Costco members already enjoy solid discounts on GM EVs – and now there’s an attractive deal on the GM Energy PowerShift Charger as well.
GM sent out a bulletin to dealers on March 17 that said Costco members are eligible for a $255 discount on the GM Energy 19.2-kW Powershift Charger when it’s purchased at a GM dealer. The charger costs $1,699 before installation, shipping, or taxes, so that’s a 15% discount, but note that the dealer ultimately sets the charger’s price.
CarsDirect reports that the discounted GM Powershift Charger can be bundled with a new EV purchase or bought on its own. The charger “must be sold as an over-the-counter accessory (ACO).”
All Costco members are eligible for the offer and will need to retrieve the authorization number from the Costco Auto website.
As for the GM Powershift Charger’s specs, GM Energy says its new 19.2 kW Powershift Charger delivers around 6-7% more juice than a typical 11.5 kW charger, delivering up to 51 miles of range per charge hour. When paired up with a compatible GM EV and the GM Energy V2H Enablement Kit, it offers bidirectional charging, meaning it can double as backup power for your home.
Designed for indoor or outdoor use, it comes with wifi connectivity, an SAE J1772 plug, a 25-foot charging cable, and integrates with the myBrand smartphone app. Costco members also have the option to finance both the charger and its installation through GM Financial.
Costco Executive members can now snag discounts of up to $1,250 on GM electric vehicles, including the Chevy Silverado EV, GMC Sierra EV, Chevy Blazer EV, Chevy Equinox EV, and both the GMC Hummer EV SUV and Pickup.
If you’re looking to electrify your business fleet instead, Costco is also offering Executive members up to $3,000 off BrightDrop’s all-electric commercial vans – the BrightDrop Zevo 400 and Zevo 600.
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