Stellantis idles plants in Mexico and Canada due to tariffs

From CNBC: 2025-04-03 10:59:00

Stellantis is halting production at two assembly plants in Canada and Mexico due to President Trump’s 25% automotive tariffs. The Windsor Assembly Plant in Canada will pause for two weeks, while the Toluca Assembly Plant in Mexico will be shut down for the entire month of April. Approximately 900 U.S.-represented employees at supporting plants will be temporarily laid off.

The tariffs, which took effect Thursday, apply to all vehicles imported to the U.S., including those from Canada and Mexico. Stellantis North American chief Antonio Filosa stated that the company is assessing the medium- and long-term effects of the tariffs on its operations and has decided to take immediate action, including the temporary production pause. The Canadian plant produces the Chrysler Pacifica minivan and Dodge Charger Daytona EV, while the Mexico plant manufactures the Jeep Compass SUV and Jeep Wagoneer S EV.

The halt in production will affect about 4,500 hourly workers at the Canadian plant, with employees at the Mexico plant still reporting to work but not producing vehicles due to their contract terms. Stellantis is actively engaging with key stakeholders, including government leaders, unions, suppliers, and dealers in the U.S., Canada, and Mexico, as it navigates the uncertainty created by the current environment. The company is also in search of a new CEO amidst these challenges.



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