Stellantis pausing some Canadian, Mexican assembly plants as tariffs arrive
Published in Automotive News
Stellantis NV is pausing production at some of its Canadian and Mexican assembly plants as new U.S. tariffs placed on automotive imports take effect — a move that is set to trigger about 900 temporary layoffs at several of the automaker's American powertrain and stamping facilities.
An email sent to Stellantis employees from North American chief Antonio Filosa on Thursday morning described the plant changes due to the new tariffs, which took effect just after midnight. The new levies announced by President Donald Trump last week apply a 25% tax on both imported cars and parts, although parts that qualify for the United States-Mexico-Canada Agreement are temporarily exempt.
Filosa's message did not say which plants would pause, but The Detroit News reported Wednesday evening that one of them is the Windsor Assembly Plant, which makes the Chrysler Pacifica minivan and similar models for the U.S. and Canadian markets, as well as Dodge's new electric Charger Daytona muscle car. It will idle for two weeks starting Monday, the union president there said. Stellantis has one other Canadian assembly facility in Brampton, Ontario, but it had already been shut down for retooling.
In Mexico, the Toluca Assembly Plant will pause production for the month starting next week, Stellantis spokeswoman Jodi Tinson said. That facility builds the Jeep Compass crossover and the Jeep Wagoneer S electric SUV. The automaker's other Mexico assembly plant in Saltillo that produces Ram heavy-duty pickups will keep operating.
"With the new automotive sector tariffs now in effect, it will take our collective resilience and discipline to push through this challenging time," Filosa wrote. "But we will quickly adapt to these policy changes and will protect our company, maintain our competitive edge and continue delivering great products to our customers."
He said while the company is assessing both medium and long-term effects of the new tariffs, it has decided to take these "immediate" plant actions in Canada and Mexico, noting they would affect "several of our U.S. powertrain and stamping facilities that support those operations."
The U.S. plants facing temporary layoffs include the automaker's stamping facilities located in Warren and Sterling Heights, as well as three facilities in Kokomo, Indiana: Indiana Transmission Plant, Kokomo Casting Plant and Kokomo Transmission Plant. The components those facilities manufacture feed the Mexican and Canadian plants that are pausing, Tinson said, though they also supply other Stellantis plants.
The Warren Stamping Plant will conduct a temporary layoff but not idle, said Romaine McKinney III, president of United Auto Workers Local 869. He said Thursday morning he was still awaiting details of the cuts.
"We understand that the current environment creates uncertainty," the Filosa email said. "Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers in the U.S., Canada, and Mexico, as we work to manage and adapt to these changes."
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