Facing a wave of new US import tariffs, automakers such as General Motors have reported a significant profit squeeze of a $1.1 billion hit in Q2 alone, translating to a 32-35% drop in earning margins. With projected tariff costs reaching $4-5 billion for the year, manufacturers are under intense pressure to offset these losses through operational cost savings, reshoring, and production restructuring.

The Tariff Backdrop
Recent changes to US import policy have triggered a domino effect across the automotive supply chain, forcing companies to rethink long-held sourcing and distribution strategies. A 25% tariff on imported vehicles and parts, effective since April 2025, has disrupted parts-intensive cross-border supply chains across the US, Canada, and Mexico. In response, automakers are now investing billions in domestic manufacturing, restructuring supply networks, and reevaluating cost strategies to mitigate tariff exposure. General Motors CFO Paul Jacobson noted that roughly 30% of the tariff impact is being mitigated through targeted operational changes, highlighting the urgent need for efficiency gains across the entire value chain.

Automation as a Tactical Cost-Cutting Tool
In this environment, automation is a financial necessity. Stoecklin offers solutions that directly support manufacturers in minimizing the operational cost burden created by tariffs via:

1. Enhanced Inventory Efficiency: Automated storage and retrieval systems (AS/RS) reduce warehousing footprints and labor expenses, critical when every dollar counts. High-density storage allows parts, from small fasteners to heavy assemblies, to be organized by demand velocity and size, reducing waste and speeding pick times.
2. Faster, More Accurate Order Fulfillment: With pick accuracy rates up to 99.9%, automation reduces expensive returns and rework. Quick batch or single-unit picking supports just-in-time (JIT) routines, enabling smoother production runs and avoiding tariff-related assembly delays.
3. Real-Time Visibility and Intelligent Demand Matching: Integrated warehouse management systems provide real-time data on inventory levels and staging. Smart replenishment and dynamic slotting avoid surplus stock in slower-moving SKUs, essential when parts tariffs inflate holding costs.
4. Scalable Flexibility for Domestic Manufacturing Shift: As OEMs repatriate production, modular automation adapts quickly to shifting SKUs and changing demand. Whether migrating parts from Mexico or Canada to US plants or ramping production of EV components, automation scales efficiently.
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Why Stoecklin Stands Out
Stoecklin's end2end automation platform integrates robotics, conveyors, AS/RS, and software intelligence tailored specifically for automotive parts distribution. This stack guarantees cost savings, faster throughput, and great adaptability-strategic levers manufacturers need to offset tariff-related financial pressures.

What This Means for North American Manufacturers
For North American automotive manufacturers, automation offers a practical path to offset rising costs and protect margins in the current chaotic trade environment. By reducing labor dependency and lowering inventory carrying costs, automated systems can deliver a rapid return on investment. Just as critically, they provide the operational resilience needed to adapt to ongoing policy shifts, allowing businesses to pivot quickly without compromising operations.

The bottom line: with US auto tariffs slashing profits and adding uncertainty to cross-border supply chains, automation is a strategic imperative. Stoecklin enables manufacturers to cut costs, optimize operations, and respond swiftly in the current environment.