Stellantis is halting production at two major North American facilities and temporarily laying off 900 U.S. workers, becoming the first automaker to take immediate action following President Donald Trump's new 25% tariffs on imported vehicles. The tariffs, which went into effect Thursday, apply to autos entering the U.S. from all countries, including close trading partners Canada and Mexico.
The automaker announced it will suspend operations for two weeks at its Windsor Assembly Plant in Ontario, Canada, and shut down its Toluca Assembly Plant in Mexico for the entire month of April. The changes begin Monday. Windsor produces the Chrysler Pacifica minivan and Dodge Charger Daytona EV, while Toluca assembles the Jeep Compass and the Jeep Wagoneer S EV.
Stellantis North America Chief Operating Officer Antonio Filosa informed employees in a letter Thursday morning that the production pause is directly tied to the newly enacted tariffs. "We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions," Filosa wrote.
The move impacts not only Canadian and Mexican operations but also five Stellantis powertrain and stamping facilities in the U.S. that supply components to the affected plants. Approximately 900 U.S.-based union employees will be temporarily laid off as a result.
In addition, around 4,500 hourly workers at the Windsor plant will be idled during the two-week pause, while employees at the Toluca facility in Mexico are expected to report to work but will not produce vehicles, in accordance with contractual terms, a Stellantis spokeswoman said.
Filosa described the new trade environment as "uncertain" and said the company is in active discussions with "top government leaders, unions, suppliers and dealers in the U.S., Canada, and Mexico." Stellantis is also currently in the process of searching for a new CEO.
The United Auto Workers criticized the automaker's decision, calling the job cuts avoidable. "Stellantis continues to play games with workers' lives," said UAW President Shawn Fain. "These layoffs are a completely unnecessary choice that the company is making."
