Stellantis Halts Production in Canada & Mexico Amid U.S. Tariffs
Stellantis has temporarily halted production at its assembly plants in Windsor, Canada, and Toluca, Mexico, in response to the new 25% automotive tariffs imposed by the Trump administration. These tariffs affect all vehicles imported into the United States, including those from Canada and Mexico. This significant move highlights the immediate impact of the tariffs on the automotive industry.
Production Shutdown Details
The shutdown will last for two weeks at the Windsor Assembly Plant and for the entire month of April at the Toluca facility. These plants produce key models for Stellantis, including the Chrysler Pacifica minivan and the Jeep Compass SUV.
The halt in production also affects the company’s U.S. operations. About 900 U.S.-represented employees working at parts-making plants that supply the assembly facilities will face temporary layoffs. At the Windsor plant, approximately 4,500 hourly workers will be impacted. However, workers in Mexico will still report to work, though they will not engage in production due to contract terms.
Impact on the Automotive Industry
Stellantis’ decision comes just after the 25% tariffs took effect on April 2, 2025. This move has added to the ongoing challenges facing the automotive industry as companies adapt to the changing trade landscape. The tariffs apply to all imports from Canada and Mexico, forcing automakers to reevaluate their strategies to stay competitive while managing production costs.
Despite these challenges, Stellantis is working to adjust to the tariffs. North American chief Antonio Filosa assured employees that the company is committed to navigating the immediate and long-term impacts of the tariffs, with ongoing discussions with stakeholders across the U.S., Canada, and Mexico.
Stellantis’ Strategy Moving Forward
Despite the temporary shutdowns, Stellantis is focused on staying resilient. Filosa emphasized the company’s dedication to adapting quickly and maintaining its competitive edge in the market. Stellantis is actively exploring ways to protect its workforce and ensure continued operations, even as it faces the uncertainty caused by the new tariffs.
As the automotive industry continues to adjust, Stellantis will likely take further steps to mitigate the impact of the tariffs on its operations, workers, and production timelines.
More…
- https://www.cnbc.com/2025/04/03/stellantis-idles-plants-in-mexico-and-canada-due-to-tariffs.html
- https://www.wsj.com/livecoverage/trump-tariffs-trade-war-stock-market-04-03-2025/card/jeep-maker-stellantis-idles-canadian-mexican-factories-in-response-to-tariffs-SQxpCxe6c8MBWHu02Y3z
- https://www.detroitnews.com/story/business/autos/chrysler/2025/04/02/stellantis-set-to-pause-windsor-plant-for-two-weeks-due-to-tariffs/82785274007Â
