Stellantis has halted production at certain auto assembly plants in Canada and Mexico following the introduction of new tariffs, leading to temporary layoffs of 900 U.S. workers.
Stellantis declared on Thursday that its Ontario plant, employing 3,600 hourly workers and producing minivans and Dodge Chargers, will temporarily shut down for two weeks starting April 7, affecting approximately 3,200 employees. Meanwhile, the Toluca plant in Mexico, which has a workforce of 2,600 and manufactures the Jeep Compass, will remain closed for at least the entire month of April.
The temporary layoffs also affect factories in Michigan and Indiana such as Warren Stamping, Sterling Stamping, Indiana Transmission, Kokomo Transmission, and Kokomo Casting, which supply parts and components to the two main assembly plants.
Employees at the Mexican plant will continue to report to work but will not engage in vehicle production due to the terms of the contracts.
In an email to employees, North American Chief Operating Officer Antonio Filosa stated that Stellantis would swiftly adjust to the policy changes introduced by Trump, emphasizing that the company’s actions are essential due to the prevailing market conditions.
Stellantis’ North American operations had long been a key driver of the company’s profits. However, last year brought challenges, with the company attributing its struggles to intensifying competition and broader market shifts. To boost sales, Stellantis implemented leadership changes in October, appointing new leaders to oversee its operations in North America and Europe.
Unifor union National President Lana Payne criticized the tariffs on Thursday, expressing concern for Canadian workers and highlighting the immediate impact on auto workers, even before the tariffs took effect. She emphasized the interconnected nature of the North American production system and the consequences workers face as a result.
Stellantis informed union leaders to anticipate schedule adjustments when the plant resumes operations, though specific details were not disclosed. Currently running two shifts, the plant was planned to introduce a third shift later this year.
The temporary production halt will enable Stellantis to manage its vehicle inventory, addressing the surplus caused by slow sales across various brands.
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