DETROIT — Stellantis has officially announced a pause in production at two of its assembly plants located in Canada and Mexico. This decision comes as the company grapples with the implications of President Donald Trump's newly implemented 25% automotive tariffs. The tariffs, effective as of Thursday, apply to all vehicles imported into the U.S., including those sourced from Canada and Mexico.
The production halt will commence on Monday and is scheduled to last for two weeks at the Windsor Assembly Plant in Ontario, Canada. Meanwhile, the Toluca Assembly Plant in Mexico will remain offline for the entire month of April. This significant action marks one of the most immediate and severe responses by an automaker in light of the tariffs.
As a result of this production downtime, approximately 900 employees represented in the U.S. at supporting plants will face temporary layoffs. Additionally, around 4,500 hourly workers at the Canadian assembly plant will also be affected. According to a company spokeswoman, employees at the Mexican facility will still report to work; however, they will not be producing vehicles due to specific contract terms.
In a recent email to employees, Antonio Filosa, Stellantis North American chief, confirmed that the production pause is directly linked to the new tariffs. He indicated that the company is currently evaluating its options in response to the economic landscape. “We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions, including temporarily pausing production at some of our Canadian and Mexican assembly plants,” Filosa stated.
These immediate actions will also impact employees at several U.S. powertrain and stamping facilities that provide support to the paused operations. The Windsor Assembly Plant is known for producing the Chrysler Pacifica minivan and the newly released Dodge Charger Daytona EV. Meanwhile, the Toluca plant is responsible for manufacturing the Jeep Compass SUV and the Jeep Wagoneer S EV.
Filosa emphasized that the current economic climate is fraught with uncertainty but reassured employees that the company remains actively engaged with key stakeholders, including top government officials, unions, suppliers, and dealers across the U.S., Canada, and Mexico. As Stellantis continues its search for a new CEO, the company is committed to navigating these challenging conditions while considering the best interests of its workforce and operations.
