America’s Auto Comeback Is Running on Fumes
Tariffs have become the automotive industry’s new steering wheel, bringing production back to American soil after years of offshoring. StellantisSTLA just announced its largest-ever $13B plan to add 5K jobs and expand plants across Michigan, Illinois, Indiana, and Ohio by 2029 — aligning neatly with Trump’s push to revive US manufacturing and new 15% tariffs on imported vehicles. But while automakers ramp up domestic capacity, the rest of the sector is straining as global supply chains buckle under new pressures.
- Auto supplier stocks sank ~8.5% last week after the collapses of First Brands and Tricolor Holdings — the steepest drop since Trump’s April tariff blitz.
- China’s tighter rare earth export rules are draining manufacturer reserves, with Italian auto parts head Roberto Vavassori warning, “that buffer is not there anymore.”
Reality check: AutoForecast Solutions sees “no boom in new builds” — just automakers retooling idle plants to dodge tariffs. Additionally, GMGM scrapped a multibillion-dollar EV hub to resume gas truck production, and it’s unclear how many of Stellantis’s new jobs overlap with the $18.9B promised in its 2023 UAW deal. The so-called manufacturing revival may sound strong, but surviving the supply squeeze will not be as easy.