Stellantis idles plants, lays off 900 on US tariffs

Spanish Market: Metals
03/04/25

Stellantis is pausing production at two factories in Canada and Mexico and laying off 900 workers at US plants as the company evaluates the effect of US automotive import tariffs.

Effective immediately, Stellantis will temporarily pause production at the Windsor Assembly Plant in Canada, resuming production in the week of 21 April, the company said Thursday. In Mexico, the Toluca Assembly Plant will halt production on 7 April through the end of the month.

As a result, the company will temporarily lay off 900 workers at five US stamping, casting and transmission plants in Michigan and Indiana that supply assembly plants.

The automaker attributed the decision to the "new automotive sector tariffs now going into effect". A 25pc tariff on all cars and trucks imported into the US took effect on Thursday and a 25pc tax on auto parts will go into effect on 3 May.

Stellantis is monitoring the tariff situation to assess whether further action is required, North America chief operating officer Antonio Filosa said in an internal email shared with Argus.

The moves affect production of Chrysler Pacifica minivans, Jeep's Compass and Wagoneer, and Dodge's new electric muscle car, the Charger Daytona.

By Pedro Consoli

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09/04/25

Delta pulls full-year forecast amid US tariffs: Update

Adds details from earnings call throughout. Houston, 9 April (Argus) — Delta Air Lines pulled its full-year 2025 financial guidance today, citing US tariff-related uncertainty. "Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook," the airline said Wednesday in an earnings call. Delta said it hoped the growing US tariff war with the world would be resolved through trade negotiations, but that it also told its main aircraft manufacturer, Airbus, that it would not purchase any aircraft that includes a tariff fee. "If you start to put a 20pc incremental cost on top of an aircraft, it gets very difficult to make that math work," chief executive Ed Bastion said in an earnings call today. In the meantime, Delta is protecting margins and cash flow by focusing on what it can control, including reducing planned capacity growth in the second half of the year to flat compared to last year, while also managing costs and capital expenses, Bastion said. Delta expects revenue in the second quarter of 2025 to be either 2pc higher or 2pc lower from the year earlier period with continued resilience in premium, loyalty and international bookings offsetting softness in domestic and standard flights. Punitive taxes on imports from key US trading partners were implemented on Wednesday despite President Donald Trump's claims of multiple trade deals in the making. Trump's 10pc baseline tariff on imports from nearly every country already went into effect on 5 April. The higher, "reciprocal" taxes went into effect today, although at midday Wednesday he announced a 90-day pause on most of the higher tariffs, while increasing tariffs on Chinese imports even higher. The company reported a profit of $240mn in the first quarter of 2025, up from $37mn in the first quarter of 2024. Confidence craters in 1Q Corporate travel started the year with momentum, but a reduction in corporate confidence stalled growth in February and March, Delta said. For the first quarter, corporate sales were up by low-single digits compared to the prior year, with strength led by the banking and technology sectors. The company's fuel expenses were down by 7pc in the first quarter of 2025 compared to the prior year period. The average price Delta paid for jet fuel was $2.45/USG, down by 11pc to the prior year period. Delta said it has seen "a significant drop off in bookings" out of Canada amid the trade disputes with that country which started earlier than the broader US tariffs. Meanwhile, Mexico is "a mixed bag," the company said. Delta is considering reducing capacity levels in Mexico and Canada in the future. The company reported a profit of $240mn in the first quarter of 2025, up from $37mn in the first quarter of 2024. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Delta pulls full-year forecast on tariff uncertainty

09/04/25

Delta pulls full-year forecast on tariff uncertainty

Houston, 9 April (Argus) — Delta Air Lines pulled its full-year 2025 financial guidance today, citing US tariff-related uncertainty. "Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook," the airline said Wednesday in an earnings call. Delta said it hoped the growing tariff war woudl be resolved through trade negotiations, but that it also told its main aircraft manufacturer, Airbus, that it would not purchase any aircraft that includes a tariff fee. In the meantime, Delta is protecting margins and cash flow by focusing on what it can control, including reducing planned capacity growth in the second half of the year to flat compared to last year, while also managing costs and capital expenses, chief executive Ed Bastion said. The company reported a profit of $298mn in the first quarter of 2025, up slightly from $288mn in the first quarter of 2024. The company's fuel expenses were down by 7pc in the first quarter of 2025 compared to the prior year period. The average price Delta paid for jet fuel was $2.45/USG, down by 11pc to the prior year period. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

S Korea unveils auto industry support after US tariffs

09/04/25

S Korea unveils auto industry support after US tariffs

Singapore, 9 April (Argus) — South Korea has unveiled planned emergency measures to support its automobile industry given the sweeping US tariffs, turning towards its domestic market and outwards to the "global south" to generate demand. South Korea exported nearly $127.8bn of goods to the US in 2024,accounting for about 18.7pc of its total exports. About almost $34.7bn were from passenger automotives. It will provide around 3 trillion South Korean won ($2bn) of new emergency liquidity support, expand its policy finance by W2 trillion to a total of W15 trillion and hand out more car export support. South Korea will also extend the electric vehicle (EV) corporate discount subsidy policy until the end of the year, and it will now support between 30-80pc of EVs' price, up from previously 20-40pc. A focus on the domestic market will help respond to lower export volumes given the US' tariffs, said the country's trade and industry ministry (Motie). The country will cut the special consumption tax on new car purchases from 5pc to 3.5pc until June, while not ruling out any other necessary additional support. It will also push its public sector, public institutions and local governments to buy "business vehicles" within the first half of 2025, which will likely buoy eco-friendly vehicle sales. Eco-friendly vehicles in South Korea refer to hybrids, battery EVs, plug-in hybrids and hydrogen-fuelled vehicles. Eco-friendly vehicle domestic sales surged by 50pc on the year to about 60,350 units in February, while exports rose by 32pc to almost 69,000 units. It is also turning to new "global south" markets by offering an extra budget on export vouchers and trade insurance support until the end of 2025, citing its agreements and negotiations with countries such as the UAE, Mexico, the Philippines and Ecuador. The combined market share of three South Korean battery firms — LG Energy Solution (LGES), SK On and Samsung SDI — on global EV battery installations in has further declined in January-February, according to the latest data from South Korean market intelligence firm SNE Research. They now take up 17.7pc of the global market share, down by almost 5.5 percentage points compared to a year earlier. "It has become also important for K-trio to come up with strategic measures to increase their local production in North America and diversify raw material suppliers," said SNE, citing the US tariffs. LGES last year said it is looking to produce energy storage system cells in the US through its subsidiary LGES Vertech from 2025. SK On earlier this week told Argus that the tariffs will have "limited" potential impact on its business, with its manufacturing facility in the US state of Georgia, SK Battery America, supplying batteries for its US sales volumes . By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexican peso weakens on US tariff fears

08/04/25

Mexican peso weakens on US tariff fears

Mexico City, 8 April (Argus) — The Mexican peso has weakened in recent days amid growing fears that US president Donald Trump's new wave of tariffs could derail the US economy and, in turn, slash Mexico's economic growth, financial analysts said. After Trump announced a series of new import tariffs on what he dubbed "Liberation Day" on 2 April, the peso initially reacted positively, as Mexico was largely spared from the measures, thanks to protections under the US-Mexico-Canada (USMCA) free trade agreement. The current tariff structure largely remains in place, which means zero tariffs on products under the USMCA agreement, except for steel, aluminum and finalized// assembled automobiles. Auto parts under USMCA still face zero tariffs. These exceptions, and other non-USMCA-compliant products, maintain 25pc tariffs on non-US content, analysts Barclays said. The peso appreciated more than 3.2pc to Ps19.97/$1 on 3 April from Ps20.4/$1 on 2 April, according to data from Mexico's central bank (Banxico). The exemptions could make Mexico more attractive in the medium- and long-term to manufacturers aiming to avoid US tariffs, Barclays said. Yet, investors are now concerned about the broader economic fallout of the escalating US-China trade conflict. "The Mexican peso is one of the most depreciated currencies [as of 7 April], because even though Mexico has not been hit with reciprocal tariffs and benefits from USMCA, the economic impact of tariffs on the US economy could significantly affect Mexico," said Gabriela Siller, chief economist at Mexican bank Banco Base. The peso weakened to Ps20.50/$1 on 4 April, from Ps19.97/$1 on 3 April, and continued weakening, closing at Ps20.69/$1 on 7 April, a 2.3pc depreciation over the last week. Year over year, the peso has tanked 21pc, affected by multiple reforms diminishing Mexico's business environment that passed in late 2024, Trump's electoral victory in November, and now by Trump's tariffs. Mexico's GDP is expected to grow by 0.2pc this year, according to a new Citi survey of 32 bank analysts, with nine forecasting zero or negative growth because of the potential fallout from US trade policy. On 1 April, Mexico's finance ministry lowered its 2025 GDP forecast to 1.5–2.3pc, down from 2–3pc. That's still more optimistic than the central bank and private analysts, who expect growth of only 0.7pc , citing uncertainty over US policy and tariff threats. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New medical device demand to disrupt rhenium market

08/04/25

New medical device demand to disrupt rhenium market

London, 8 April (Argus) — Superalloys have been the primary source of rhenium demand over the past two decades, but new medical applications have the potential to disrupt the market. Several molybdenum-rhenium (MoRe) alloy medical devices have been approved by the US Food and Administration (FDA) over the past 18 months and demand is growing fast, delegates at the Minor Metals Trade Association (MMTA) annual conference in Lisbon heard today. China has been hoovering up much of the global supply of rhenium, which is primarily produced by Molymet in Chile, for its burgeoning aerospace manufacturing industry. China surpassed the US as the largest importer of rhenium from Chile in 2023, taking 26t — up from 2t in 2018 — according to UK-based trading firm Lipmann Walton. That was equivalent to Molymet's annual primary production. The US has historically been the largest importer for its aerospace industry, with aerospace superalloys typically accounting for around 75pc of overall rhenium demand. But the aerospace industry will increasingly need to compete with the medical industry for supply over the coming years, several speakers said. Mo50 Re alloy, which contains 47.5pc rhenium and 52.5pc molybdenum, has been cleared by the FDA for use in spinal implants, and more recently cardiovascular stents. MiRus, which is developing spine, limb and structural heart disease treatments using its MoRe alloys, received FDA clearance of the first MoRe-based spine implant in 2019 and has since received further approvals for its devices. "It takes up to 10 years for medical approvals, but now approved, the demand from this sector alone could be as much as the largest premium producer makes in any given year," Lipmann Walton managing director Suzannah Lipmann said. Rhenium-based alloys have been associated with high-temperature applications, but they continue to find new uses at body temperature that benefit from its mechanical strength, fatigue resistance and biological performance as an alternative to traditional stainless steel, titanium, nickel-titanium and cobalt-chromium alloys used in medical implants. MoRe implants have so far not shown the allergic reactions that can results from nickel, cobalt or chromium implants. "It's one thing to have the approval for a new design, for a new type of instrument based upon traditional materials, but it's a totally different thing to have the approval for a new material," Molymet's research director Edgardo Cisternas. "This is a major milestone that opens the door for the use of this material. It's already being used in spinal and coronary surgeries, and probably will set new standards for bio-operability." Rhenium alloys show promise for the design of a new generation of smaller, stronger and more fatigue-resistant foot and ankle implants, which result in faster recovery and better outcomes for patients, Titan International's chief technical officer Alex Iasnikov said. Traditional devices have a tendency to break over time, at a rate of up to 10pc, requiring replacement, Iasnikov said. But rhenium-containing implants are more robust and have shown zero breakage rates in initial testing. MoRe stents can absorb more radiation than traditional alloys, making them easier to implant more precisely and safely. "With our ageing population around the world, this is going to result in big demand," Iasnikov said. "We believe that demand for this can grow very substantially, and I wouldn't be surprised if in 10 years it might disrupt markets." Growing demand for rhenium, driven by megatrends such as medicine, electronics and green hydrogen refining, in addition to Chinese aerospace manufacturing, could lift prices to levels that would spur increased recycling, speakers said. This is particularly the case as annual output from the world's four major primary producers is set to remain relatively stable, given reductions in copper and molybdenum concentrate content in legacy ore bodies and a lack of new mining capacity in development. By Nicole Willing Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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