Stellantis Considers Providing Tariff Assistance to Parts Suppliers

Stellantis is looking to establish a program to help its parts suppliers adjust to incoming tariffs, according to a report from Transport Topics.

Tariff payments will need to be made by parts makers to Customs and Border Protection before their goods can be brought into the U.S. Some parts makers are now urging automakers to assist them with the additional cost of tariffs.

In Detroit last week, Marlo Vitous—Stellantis’ head of purchasing in North America—shared with investors plans for a program that would provide help to part suppliers to make monthly tariff payments to the U.S. government.

Instead of raising prices on parts, Stellantis is considering allowing for a monthly lump sum payment from eligible suppliers to help mitigate the cost. Suppliers would need to meet certain requirements to qualify for assistance, and it’s unknown how high a percentage Stellantis would contribute.

“They’re talking, with bated breath, about being willing to support suppliers with costs associated with tariffs,” said Mitch Zajac, an automotive and supply chain attorney with Butzel Long who is advising clients on Stellantis’ plan. “There will be some sort of assessment of the criticality of the parts perhaps, or the ability to re-source or dual-source the parts.”