Background
Who is one of Canada's biggest Automotive customer? (country)
United States (US)
What type of market structure does Stellantis have?
Competitive Oligopoly Structure
What happened to Stellantis temporarily after the tariffs were imposed?
Temporarily paused production and laid off 900 staff in the US
What is GDP?
Gross Domestic Production (GDP) refers to the market value of the final goods and services produced in a country during a particular period. GDP is used to measure a country’s financial health.
Which are the 3 car companies that merged to form Stellantis?
Fiat, Chrysler and PSA Group
25%
What other methods did Stellantis use to remain competitive?
Celebrity endorsement
Name the 3 types of approaches of GDP and what can you infer about the effect of GDP on the automotive industry?
Output approach, income approach, expenditure approach -> all shows that GDP falls
Name some raw materials or parts of automotives that were affected by the tariff trade?
Steel, aluminum, auto parts
What happens to the welfare of producers in US and Canada due to the tariffs? (hint: increase/decrease)
Welfare of producers in US increase while welfare of producers in Canada decrease
Fill in the blank:
Raising prices will cause lost incurred as prices are _ above kink P. Buyers will switch to cheaper vehicles from other companies.
Elastic
Which type of unemployment did we focus on in our presentation?
Structural and cyclical
How many employees were laid off in the video?
900
Is Stellantis's PED elastic or inelastic and why?
Inelastic for a luxury good
Fill in the blank:
Reducing prices will cause other companies to match price drop as prices are _ below kink P. This erodes any increase in revenue for Stellantis.
Inelastic
What kinds of shift occurred in the AD-AS model?
Leftward shifts for both AD and AS