Nissan Motor, already facing declining profits and tough business conditions, is now at risk of further financial damage due to potential tariffs. The company reported a significant profit drop in February and revised its financial outlook down for the third time in a year. It is also dealing with unsuccessful merger talks with Honda and is working on cost-cutting measures, including job reductions. The looming 25% tariff on goods from Canada and Mexico could significantly affect Nissan, as about one-third of the cars it sold in the U.S. last year were manufactured in Mexico. CEO Makoto Uchida expressed that such tariffs would severely impact profits.
Stellantis, another automaker, is also grappling with financial troubles. The company, known for brands like Chrysler and Jeep, reported a 70% drop in net income in 2024. Stellantis manufactures vehicles like the Chrysler Pacifica minivan at its Windsor, Ontario plant, and any tariff implementation could disrupt its operations further, raising the price of vehicles for consumers and complicating supply chains. Both companies are facing significant challenges as trade policies and tariffs threaten their financial stability.