DETROIT — Stellantis has announced a temporary halt in production at two of its assembly plants located in Canada and Mexico, a decision made in response to President Donald Trump’s newly imposed 25% tariffs on automotive imports. The company confirmed the changes on Thursday.
This move marks the most immediate and significant reaction by an automaker to the tariffs, which took effect on Thursday and apply to all vehicles brought into the U.S., including those manufactured in Canada and Mexico.
Beginning next Monday, Stellantis will implement a two-week suspension of operations at its Windsor Assembly Plant in Ontario, Canada. The Toluca Assembly Plant in Mexico will halt production for the entire month of April.
The production stoppage will result in temporary layoffs for approximately 900 workers at supporting plants in the U.S., alongside around 4,500 hourly employees in Canada. Workers in Mexico are expected to report to their facility but will not be producing vehicles due to contractual stipulations, according to a company representative.
In a communication sent to employees on Thursday, Stellantis North America’s chief, Antonio Filosa, stated that the decision to pause production is directly linked to the new tariffs as the company assesses potential courses of action.
“We are continuing to evaluate the medium- and long-term implications of these tariffs on our business but have opted to take immediate measures such as temporarily halting production at several of our Canadian and Mexican assembly plants,” Filosa explained. “These decisions will affect some employees at multiple U.S. powertrain and stamping facilities that support those operations.”
On Thursday, shares of Stellantis closed at $10.21, experiencing a 9.4% decrease, marking the company’s most significant decline since September.
The Windsor plant manufactures the Chrysler Pacifica minivan as well as the newly launched Dodge Charger Daytona EV, while the Toluca plant is responsible for producing the Jeep Compass SUV and the Jeep Wagoneer S EV.
Lana Payne, President of Unifor National, which represents the Canadian workers, criticized the tariffs and expressed concerns for her members’ job security.
“Unifor has warned that U.S. tariffs would have an immediate negative impact on auto workers, and in this situation, layoffs were announced even prior to the tariffs taking effect,” she stated in a press release. “Trump is poised to learn just how interconnected the North American manufacturing system is, with auto workers suffering the consequences of that lesson.”
Filosa acknowledged the “current environment creates uncertainty,” yet reassured employees that the company, which is actively seeking a new CEO, remains “fully engaged with our key stakeholders, including top government leaders, unions, suppliers, and dealers in the U.S., Canada, and Mexico.”
The production halt will also assist Stellantis in reducing accumulated vehicle inventory levels that have swelled due to tepid sales across many of its brands.
In contrast, Detroit competitors Ford Motor and General Motors have responded to the tariffs without shutting down production.
GM increases truck output
GM has announced plans to boost production of pickup trucks at an Indiana plant.
This increase in workforce is alongside the hiring of supplemental employees to accommodate summer leave and time off for regular staff, according to an insider familiar with the strategy.
Without mentioning the tariffs, GM confirmed the plans on Thursday through an emailed statement.
The Detroit-based automaker is known for producing its highly lucrative pickup trucks, including the Chevrolet Silverado and GMC Sierra, at multiple facilities across the U.S., Canada, and Mexico.
Unlike Stellantis, GM has not enacted production cuts due to the tariffs, according to the source, who requested anonymity.
Ford offers employee discounts
In a response to the tariffs, Ford rolled out a program allowing all customers to access employee discounts, starting just hours after the tariffs took effect.
The promotional initiative, referred to as “From America, For America,” will run from April 3 through June 2 and promises “significant savings,” though specific details on the discounts have not been disclosed.
Excluded from this offer are larger models such as the Ford Raptor, 2025 Ford Expedition, Ford Super Duty trucks, and Lincoln Navigator SUVs.
Ford expressed awareness of the uncertainty many Americans are experiencing, stating, “We have the retail inventory to fulfill this and a wide range of options for customers in need of a vehicle.”
During the first quarter, U.S. auto sales exceeded expectations as consumers rushed to purchase vehicles before the tariffs took effect, anticipating potential price increases.
— Finance Newso’s Michele Luhn contributed to this article.
