| Thanks for reading Hyperdrive, Bloomberg's newsletter on the future of the auto world. Read today's featured story in full online here. Stellantis has offered to help its suppliers pay tariff costs to withstand the initial shock of President Donald Trump's trade war. The automaker outlined a program in which suppliers would apply for help from the company to make monthly tariff payments to the US government, according to a person familiar with the matter. Marlo Vitous, Stellantis' head of purchasing in North America, laid out the plan during a meeting with suppliers in Detroit last week, the person said. It's unclear what percentage of the cost Stellantis is willing to pay, and suppliers would have to meet a number of requirements in order to qualify for the program, said the person, who asked to not be identified discussing the plans because they aren't public. Stellantis declined to comment.  The Stellantis Dundee Engine Complex in Dundee, Michigan. Photographer: Bill Pugliano/Getty Images The discussions highlight how the auto industry is beginning to digest the initial fallout from Trump's escalating trade war. A 25% tariff on US auto imports took effect last Thursday, while a levy on parts is slated to begin no later than May 3. The measures are expected to dramatically increase costs and upend supply chains. Stellantis last week said it would temporarily halt production at plants in Canada and Mexico in response to the levies, triggering hundreds of layoffs in the US. The company and other carmakers also rolled out discounts and other measures to keep shoppers coming to dealerships. Many suppliers are on shaky financial ground, having borrowed to invest in production of electric vehicles that are falling short of sales expectations. Some parts makers are now pushing automakers to help them absorb the cost of tariffs. "They're talking, with bated breath, about being willing to support suppliers with costs associated with tariffs," said Mitch Zajac, an automotive and supply chain attorney with Butzel Long in Detroit who is advising clients on Stellantis' plan. Parts makers must make tariff payments to US Customs and Border Protection before their goods can be cleared to enter the US, Zajac said. Rather than raise the price of components in supplier contracts, Stellantis is discussing a monthly lump-sump payment for eligible suppliers to help defray that cost, he said. "There will be some sort of assessment of the criticality of the parts perhaps, or the ability to re-source or dual-source the parts," Zajac said, cautioning that the money is not guaranteed and it's still early in the process.  A Porsche dealership in Shanghai. Photographer: Qilai Shen/Bloomberg Mercedes and Porsche sales already were headed in the wrong direction ahead of Trump's tariff shock. The two automakers reported global declines of 10% and 8%, respectively, for the first quarter, with both continuing to shrink in China. North America was a bright spot, with Porsche deliveries jumping 37% in the quarter. That will be difficult to sustain as import costs rise, since the 911 maker lacks any US production sites. Read More: Lamborghini sets up tariff response task force. | 
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