US Stock Market Move | Automobile sector falls, Stellantis (STLA.US) drops 5%

On Friday, the automotive sector trended lower, with Tesla, Inc. (TSLA.US) falling over 7.4%, Stellantis (STLA.US) down 5%, General Motors Company (GM.US) dropping over 3.5%, and Ford Motor Company (F.US) falling 0.16%. In response to the impact of Trump's auto tariffs, automotive giant Stellantis announced dual measures on Thursday: emergency layoffs and promotional activities. The company announced the temporary layoff of 900 workers at five US factories, with CEO Carlos Tavares calling it "the terrifying consequences of tariff policies". Additionally, the company offered public employee discounts of up to 12% off the suggested retail price, including core models like the Jeep Grand Cherokee. While the company has a 78% domestic production rate in North America, higher than the industry average, key components like imported transmissions face a 25% tariff. As a result, the production cost of each Ram 1500 pickup truck will increase by $2,300, directly impacting 32% of the first-quarter profit margin. Following Stellantis' layoff announcement, the United Auto Workers union activated an emergency clause, requesting a renegotiation of the 4-year wage agreement signed for 2023.