Stellantis Halts Production in North America Amid Tariff Tensions
In response to a recent policy shift by the United States, automaker Stellantis is putting a hold on production at two key facilities in Canada and Mexico. This decision comes shortly after President Donald Trump announced a 25% tariff on imported vehicles, a move aimed at bolstering domestic manufacturing but which also poses challenges for companies relying on international supply chains.
Stellantis, known for its Jeep, Citroën, and Ram brands, will pause operations at the Windsor assembly plant in Canada during the weeks of April 7 and 14, with the expectation to resume work by April 21. Similarly, the company will halt production at its Toluca assembly plant in Mexico for the entire month of April, beginning April 7.
This production downtime will necessitate temporary layoffs at several U.S. facilities, including the Warren and Sterling stamping plants in Michigan and the Indiana and Kokomo transmission plants, along with the Kokomo casting facility in Indiana. Stellantis is actively assessing the situation to decide on any further measures.
North American Chief Operating Officer Antonio Filosa communicated to employees via email that the company is swiftly adapting to the new tariffs imposed by the Trump administration. Filosa emphasized the importance of these actions due to “current market dynamics” and assured employees of Stellantis’ commitment to engaging with stakeholders across the U.S., Canada, and Mexico.
Late last month, Trump declared the 25% tariff on auto imports, a strategy intended to encourage domestic production. In a related move, Canadian Prime Minister Mark Carney announced that Canada would mirror these tariffs on U.S. vehicle imports.
Stellantis has been navigating various internal challenges, including the resignation of CEO Carlos Tavares in December, amid struggles with declining sales. The company’s North American operations have been a primary source of its profitability, yet increasing competition and significant market shifts have presented additional hurdles.
In an effort to revitalize its sales, Stellantis underwent leadership changes last October, appointing new heads for its North American and European operations. Furthermore, Stellantis announced plans in January to reopen an assembly plant in Illinois and build the next-generation Dodge Durango in Detroit, aiming to address issues with the United Auto Workers (UAW).
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