Windsor, Canada – Stellantis, the multinational automotive corporation, is facing production challenges at its assembly plants in Canada and Mexico due to new automotive tariffs imposed by President Donald Trump. The swift decision to pause production comes as the company grapples with the implications of the 25% tariffs on vehicles imported to the U.S., including those from Canada and Mexico.
The Windsor Assembly Plant in Ontario, Canada, is set to see a two-week downtime starting next Monday, while the entire month of April will be a production hiatus at the Toluca Assembly Plant in Mexico. These measures will impact approximately 900 U.S.-represented employees at supporting plants and around 4,500 hourly workers at the Canadian facility. Although workers at the Mexican plant will still report to work, they will not be producing vehicles during this period.
Antonio Filosa, the Stellantis North America chief, communicated the reasons behind the production pause in an email to employees, citing the need to assess the medium- and long-term effects of the tariffs. The Canadian plant is known for producing the Chrysler Pacifica minivan and the Dodge Charger Daytona EV, while the Mexico plant is responsible for the Jeep Compass SUV and Jeep Wagoneer S EV. The company continues to engage with various stakeholders, including government leaders, unions, suppliers, and dealers in the U.S., Canada, and Mexico amid the uncertainty created by the current environment.
Stellantis’ decision to halt production highlights the challenges faced by automakers in navigating the changing regulatory landscape. The impact of the tariffs on the automotive industry underscores the complexities of global trade and the implications for multinational corporations. As Stellantis considers its options in response to the tariffs, the temporary layoffs and production pauses serve as a reminder of the interconnectedness of the automotive supply chain. The company’s commitment to engaging with key stakeholders demonstrates its proactive approach to addressing the challenges posed by the new tariffs. Stellantis’ actions reflect the broader implications of trade policies on the automotive sector and highlight the need for strategic decision-making in a rapidly evolving regulatory environment.
