Fiat's owner says it is 'almost immune' to US tariff hikes and predicts a rise in Brazilian production

Stellantis' vehicle production in Brazil is expected to grow this year despite market challenges including high interest rates, said João Irineu Medeiros, the group's vice president of regulatory affairs for South America. Last year, the company, which includes brands such as Jeep, Citroen, and Fiat, produced approximately 900,000 vehicles in Brazil.

"The market is difficult and always very complex, but Brazil currently sells 2.5 million light vehicles per year and the trend is to reach 3 million by 2030, according to major consultancies," the executive told Reuters during the ESG Integrity Yearbook award ceremony the day before.

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"We don't anticipate any loss or reduction (in production) for this year. We don't yet know how much we can grow this year because we're still in the middle of it," he added.

The executive believes that the group is almost immune to the US tariff increase against Brazil since most of the national production is aimed at local demand and few vehicles are sold to Mexico.

"Our biggest market is here. We produce in Brazil and Argentina and export to Latin America. We are not directly impacted by this movement," said Medeiros.

The group announced a week ago the opening of a vehicle disassembly center in Osasco, in greater São Paulo, and the expectation, said Medeiros, is that the facility can reduce Stellantis' costs and lower vehicle prices.