Stellantis Suspends Operations at Canadian and Mexican Plants Amid New Auto Tariffs

Stellantis, the multinational automotive manufacturer, has announced the suspension of production at its plants located in Canada and Mexico. This decision comes in response to the recent implementation of a 25% tariff on imported vehicles, as declared by President Donald Trump. The suspension is expected to lead to temporary layoffs affecting around 900 employees in the United States.

Specifically, the Windsor assembly plant in Canada will halt operations for the weeks of April 7 and 14, with plans to resume production the week of April 21. Similarly, the Toluca assembly facility in Mexico will also cease production for the entirety of April, starting on the 7th.

As a result of these production halts, temporary layoffs will extend to several other facilities, including the Warren and Sterling stamping plants in Michigan, as well as the transmission plants in Indiana and the Kokomo casting facility.

Stellantis is committed to closely monitoring the evolving situation to assess the need for further adjustments. In a communication to staff, North American Chief Operating Officer Antonio Filosa emphasized the company's intent to swiftly adapt to the new policy landscape, citing the necessity of these actions in light of current market conditions.

Filosa acknowledged the uncertainties created by the new tariffs, assuring employees that the company remains actively engaged with key stakeholders, including government officials, unions, suppliers, and dealers across the U.S., Canada, and Mexico. This collaborative approach aims to navigate the challenges posed by the recent changes in trade policy.

The imposition of the 25% tariffs by Trump has sparked concerns within the automotive industry. While the White House positions this move as a means to bolster domestic manufacturing, it poses significant challenges for automakers who rely heavily on global supply chains. In a reciprocal response, Canadian Prime Minister Mark Carney announced that Canada would also implement a matching tariff on vehicles imported from the United States.

Stellantis has been facing its own set of challenges, including a decline in sales, which has prompted leadership changes within the company. Following the resignation of CEO Carlos Tavares in December, Stellantis has been striving to address competitive pressures and shifts in the automotive market. Efforts to revitalize sales included appointing new leaders for North American and European operations last October. As part of its recovery strategy, the company plans to reopen an assembly plant in Illinois and produce the next generation of the Dodge Durango in Detroit.