Stellantis Mexico, Canada plants pause production due to tariffs resulting in layoffs at other U.S. supporting plants as well.
Tariffs cause Stellantis Mexico, Canada to pause production
The Windsor Assembly Plant in Ontario, Canada is set to pause production for two weeks while the Toluca Assembly Plant in Mexico will be paused for the entire month of April.
As a result of this pause in production, around 900 U.S. employees supporting those plants will be temporarily laid off in addition to about 4,500 hourly workers at the Canadian plant as reported by CNBC.com.
The automaker confirmed these layoffs are a direct result to U.S. President Donald Trump’s 25% automotive tariffs that went into effect overnight.
Workers at the plant in Mexico will still report to the facility but not produce vehicles due to their contract terms, the spokeswoman said to CNBC.
“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,” Stellantis North American chief Antonio Filosa said in an email to employees “Those actions will impact some employees at several of our U.S. powertrain and stamping facilities that support those operations.”
Windsor Canada plant produces the Chrysler Pacifica and the new Dodge Charger Daytona EV. While the Mexico plant produces the Jeep Compass SUV and Jeep Wagoneer S EV.
Stellantis also builds the Ram HD trucks and was building two new plants to handle overflow production for the Ram 1500 in Mexico.
Other tariff news
In other tariff-related news, Ford announced it is giving new customers employee pricing through the June 2, 2025 as it determines its next steps in response to the tariffs.
The employee plan can save consumers several thousands and it is below dealer invoice.
Ford PR is circulating this graphic touting their U.S. manufacturing efforts.
Ford CEO Jim Farley has been a vocal opponent of the tariffs and has said even with all the U.S. production, they will be hit by the tariffs.
Our take
There’s really no other way to say it besides, so it begins.
