Jamie Spencer
900 U.S. Workers Temporarily Laid Off as Company Adjusts to New Tariffs
Automaker Stellantis, which owns brands like Jeep, Citroën, and Ram, has announced it will temporarily halt production at two of its facilities, the Windsor assembly plant in Canada and the Toluca assembly plant in Mexico, in response to President Donald Trump’s recent announcement of a 25% tariff on imported vehicles. This move will result in 900 U.S. employees being temporarily laid off as a result of the production stoppage.
The shutdown at the Windsor plant, located in Canada, will occur for two weeks—April 7 and April 14. Operations are expected to resume the week of April 21. Meanwhile, the Toluca assembly plant in Mexico will pause production for the entire month of April, starting April 7. The company is monitoring the situation closely to determine if further action is needed.
Temporary Layoffs and Uncertainty for U.S. Workers
Due to the halt in production, temporary layoffs will also affect workers at Stellantis’ Warren and Sterling stamping plants in Michigan, as well as the Indiana transmission plants and the Kokomo casting facility in Indiana. In an email to employees, Stellantis’ North American Chief Operating Officer Antonio Filosa explained that the company would quickly adapt to the tariff-induced policy changes. Filosa reassured employees by stating, “We understand that the current environment creates uncertainty. Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers, and dealers in the U.S., Canada, and Mexico, as we work to manage and adapt to these changes.”
Impact of Trump’s Tariffs and Canada’s Response
President Trump’s 25% tariffs on auto imports, announced late last month, were intended to foster domestic manufacturing. However, the tariffs are expected to create financial strain on automakers that rely on global supply chains. In response, Prime Minister Mark Carney of Canada announced that the country will match Trump’s tariffs on U.S. vehicles, adding further strain to cross-border trade.
Stellantis Struggles Amid Market Changes
Stellantis has been facing challenges of its own. In December, CEO Carlos Tavares stepped down amid declining sales. North America had long been a profitable region for the company, but increasing competition and shifting market conditions led to struggles in recent years. In response, Stellantis made leadership changes in October, appointing new heads for its North American and European operations. The company also announced plans to reopen an assembly plant in Illinois and build the next-generation Dodge Durango in Detroit, aiming to resolve ongoing issues with the United Auto Workers (UAW).
