Stellantis Halts Production: Tariffs Trigger Plant Shutdowns
Stellantis Shuts Down Plants in Canada and Mexico Due to US Tariffs
DETROIT — Stellantis, the automaker behind Chrysler, Jeep, and Ram brands, has temporarily halted production at two assembly plants, one in Canada and one in Mexico, in response to new 25% US tariffs on imported vehicles. The shutdowns, announced Thursday, are the most significant response from an automaker to the tariffs, which took effect the same day.
The Windsor Assembly Plant in Ontario, Canada, will be idled for two weeks, beginning Monday, April 1, with production resuming the week of April 21. This will affect approximately 3,200 Canadian workers, according to Stellantis spokesperson LouAnn Gosselin, and an estimated 4,500 according to Unifor Local 444. The plant produces the Chrysler Pacifica minivan and the Dodge Charger Daytona EV. The temporary closure also impacts approximately 900 US-represented employees at supporting plants in the Midwest, resulting in temporary layoffs. These supporting facilities include stamping plants in Warren and Sterling Heights, Michigan, as well as locations in Indiana.
Stellantis’ Toluca Assembly Plant in Mexico, which produces the Jeep Compass SUV and Jeep Wagoneer S EV, will be shut down for the entire month of April. While workers will still report to the facility, they will not be producing vehicles due to contractual obligations.
In an email to employees, Stellantis North American chief Antonio Filosa attributed the production pauses directly to the tariffs, stating the company is reviewing its options and assessing the long-term impact. He emphasized that Stellantis is engaging with government leaders, unions, suppliers, and dealers in all three countries to navigate this uncertain environment. The company is also searching for a new CEO.
While the tariffs apply to the value of non-American content in imported vehicles, parts imported under the Canada-United States-Mexico Agreement (CUSMA) are currently expected to remain tariff-free. However, the uncertainty created by the tariffs has already prompted Stellantis to take swift and significant action, impacting thousands of workers across North America. The company has committed to providing updates as the situation unfolds.
DETROIT — Stellantis, the automaker behind Chrysler, Jeep, and Ram brands, has temporarily halted production at two assembly plants, one in Canada and one in Mexico, in response to new 25% US tariffs on imported vehicles. The shutdowns, announced Thursday, are the most significant response from an automaker to the tariffs, which took effect the same day.
The Windsor Assembly Plant in Ontario, Canada, will be idled for two weeks, beginning Monday, April 1, with production resuming the week of April 21. This will affect approximately 3,200 Canadian workers, according to Stellantis spokesperson LouAnn Gosselin, and an estimated 4,500 according to Unifor Local 444. The plant produces the Chrysler Pacifica minivan and the Dodge Charger Daytona EV. The temporary closure also impacts approximately 900 US-represented employees at supporting plants in the Midwest, resulting in temporary layoffs. These supporting facilities include stamping plants in Warren and Sterling Heights, Michigan, as well as locations in Indiana.
Stellantis’ Toluca Assembly Plant in Mexico, which produces the Jeep Compass SUV and Jeep Wagoneer S EV, will be shut down for the entire month of April. While workers will still report to the facility, they will not be producing vehicles due to contractual obligations.
In an email to employees, Stellantis North American chief Antonio Filosa attributed the production pauses directly to the tariffs, stating the company is reviewing its options and assessing the long-term impact. He emphasized that Stellantis is engaging with government leaders, unions, suppliers, and dealers in all three countries to navigate this uncertain environment. The company is also searching for a new CEO.
While the tariffs apply to the value of non-American content in imported vehicles, parts imported under the Canada-United States-Mexico Agreement (CUSMA) are currently expected to remain tariff-free. However, the uncertainty created by the tariffs has already prompted Stellantis to take swift and significant action, impacting thousands of workers across North America. The company has committed to providing updates as the situation unfolds.
