FCA Claims Trump Tariffs Would Destroy Jeep Renegade Sales

FCA Claims Trump Tariffs Would Destroy Jeep Renegade Sales

Jeeps smallest U.S. offering stands to be hit hard by proposed import tariffs, according to calculations from an investment advisory firm, and the volume of vehicles Fiat Chrysler brings in from outside U.S. borders would see the automaker take it on the chin.

With the Trump administration mulling a range of tariffs, the firm tabulated just how much the import duties could cost FCA. If the tariffs come to pass, expect to see fewer Jeep Renegades on your local dealer lot.

Data from Evercore ISI, published by Automotive News, reveals that a 25-percent tariff on vehicles built outside U.S. borders would cut into FCA’s profits to the tune of $866 million a year. That’s the worst-case scenario.


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xjug1987axjug1987a - 6/28/2018 11:10:29 AM
+4 Boost
Pretty sure they've got plants here... so build it here and avoid the tariff... problem solved.


TomMTomM - 6/28/2018 12:27:46 PM
0 Boost
IT is not that easy - they do not have a plant that currently produces that PLATFORM in the USA (It is built on a FIAT platform) - so it would mean re-equipping a factory here - something that would take time - IF they actually sell enough to make them here. I suspect they don't - and won't.


TruthyTruthy - 6/28/2018 12:08:30 PM
-6 Boost
Was anyone buying this Jeep before?


MDarringerMDarringer - 6/28/2018 4:07:40 PM
+1 Boost
It sells quite well at a little over 100K units a year in the USA.


TruthyTruthy - 6/28/2018 1:07:00 PM
-3 Boost
coch - remember the EU 'socialists" you are whining about were our allies in WW@ and for the last 70 years have been with the US the bulwark against despots and communism that has resulted in a stable and much richer world. DumbDonnie prefers to cozy up to our enemy during this period. SAD.


MDarringerMDarringer - 6/28/2018 4:06:38 PM
+1 Boost
That's why Sergio is a dumbass for building an American car in Italy.


atc98092atc98092 - 6/28/2018 6:58:20 PM
+3 Boost
"FCA Claims..." Uh, nothing in the article says that FCA is making the claim. It's an independent investment advisory firm. If FCA commissioned the report, the article doesn't say that.


MBKingMBKing - 6/28/2018 10:10:33 PM
+3 Boost
Just raise the price to offset any impact! I’m excited to see these how these tariffs ultimately end up impacting consumers. I’ll laugh so hard if a base 320i costs $50k next year. If you can’t afford it, go buy a Malibu.


TruthyTruthy - 6/29/2018 10:18:14 AM
+3 Boost
joneshamilton, trade agreements are complex. There are not often direct product for product comparisons. For instance, we export far more farm produce to EU and Asia. nearly 80 percent of apples grown in the NW are exported. DumbDonnie does not grasp complex issues. "Hey, I don't see any Pintos in Germany. - f**k Germany." This is about how forward thinking his thought process is. Sad.
By the way, Ford produces many cars in EU.
If your only way of expressing yourself is "keep kickin' them in the nuts," then you also do not grasp these issues.


MBKingMBKing - 6/29/2018 5:05:08 PM
+3 Boost
Truthy - there is no use in trying to explain these issues. GOP followers need to see an actual impact in their lives in order to "get it". The biggest losers with things like trade wars, protectionism, de-globalization, and reduction in social programs are the people in this country who don't have money. The median household income in the 30 "Red" states from the 2016 election is approximately $51,500 compared to the $63,500 in the 20 states that voted "Blue". Everyday we move further and further into becoming a services based economy, meaning that the income trend will continue to shift away from predominately blue collar "Red" states to white collar "Blue" states.


MDarringerMDarringer - 6/30/2018 12:32:05 PM
0 Boost
We already know that Lefties are fiscal idiots that are incapable of understanding market economics. Boy does that show here!


MBKingMBKing - 6/30/2018 5:15:45 PM
+1 Boost
LOL - let's keep on topic as no one here is looking for your editorial. Look up the graph of the the unemployment rate that Obama received when he took over office and the unemployment rate that he provided to Trump. I look forward to hearing back on your findings, you will be graded.


rlbdckyrlbdcky - 6/30/2018 9:47:22 AM
+1 Boost
Just yesterday, GM said tariffs would force them to cut production due to increased costs of manufacturing in the US. Auto tariffs just aren't going to happen. That's a red-line for Congress. If you think the well connected are going to let millions of dollars of their equity in their dealerships just evaporate, then you're pretty naive. Also woe to the politician who raises car prices (by 20%!!!) and limits choices during an election year. Just last weekend, Sen. Flake said he would stop all judicial appointments if the tariffs were implemented. Congress can stop Trump's abuse of his tariff authority. They're already grumbling about the metals tariffs, but auto tariffs will be just too much for them to ignore.


MDarringerMDarringer - 6/30/2018 10:14:37 AM
0 Boost
100% BS. GM has to keep the UAW Leftards off their ass and the only way to do that is to throw mock rage at the possibility of a tariff.

It is also BS to say that tariffs will destroy a domestic auto manufacturing industry and the sales arm. In markets where there are tariffs on foreign cars, dealers are still doing business and in car producing countries with tariffs, cars are rolling off the assembly lines.


rlbdckyrlbdcky - 6/30/2018 11:42:08 AM
+1 Boost
Modern manufacturers have global operations and global supply chains. Trump is already taxing steel and aluminum—two inputs that are key components for most manufacturers. By making the US less competitive cost-wise, he's going to push production outside the US and damage the competitiveness of US products in a global market. And that damage is just the start as our trading partners levy counter-tariffs and shift their purchases to more trade-friendly partners. Trade wars are a classic lose, lose situation. You can deny this, but American industry is speaking. It started with Harley-Davidson, but will hardly end there.


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