Stellantis halts production, lays off 900 workers

Stellantis announced that it is temporarily laying off 900 workers at five U.S. facilities and pausing production at one assembly plant in both Mexico and Canada. This decision comes in response to the recent announcement by US President Donald Trump of broad tariffs, which include a 10% baseline on all imports—with even higher rates for certain countries—following a previous imposition of 25% duties on all auto imports that sent shockwaves through the global automotive industry.

In a letter to employees, Antonio Filosa, Stellantis' Chief Operating Officer for the Americas, stated that while the company continues to assess the medium- and long-term effects of these tariffs, immediate action was necessary. As part of its short-term measures, the company has decided to temporarily halt production at assembly plants in Windsor, Ontario, and Toluca, Mexico. The Windsor plant, which manufactures the Chrysler Pacifica minivan, will remain closed for two weeks, and the Toluca facility, producing the Jeep Compass SUV, is expected to remain shut for the rest of April 2025.

The production stoppages are set to affect operations in the U.S. as well, impacting about 900 workers in Michigan and Indiana who provide parts to these plants. Stellantis is taking these steps to reassess its North American operations in light of the new tariffs, which analysts estimate could raise production costs by roughly $5,000 per vehicle and potentially reduce earnings for major automakers by as much as 60%.

In a bid to alleviate the financial impact and maintain consumer demand, Stellantis has extended employee-discount pricing to the general public on select 2024 models, including popular Jeep, Ram, and Dodge vehicles. This move mirrors strategies deployed by other automakers, such as Ford, as the industry grapples with the challenges of evolving trade policies.