Stellantis to Halt Canada, Mexico Plants Over US Tariffs

Stellantis has announced the temporary suspension of production at two assembly plants in Canada and Mexico in response to the 25% automotive tariffs imposed by the United States. The affected plants include the Windsor Assembly Plant in Ontario, Canada, which will halt production for two weeks starting Apr. 7, and the Toluca Assembly Plant in Mexico, which will remain inactive throughout April.

The Windsor plant, responsible for assembling the Chrysler Pacifica and Voyager minivans, and Dodge Charger Daytona EV, employs approximately 4,500 workers. Meanwhile, the Toluca facility manufactures the Jeep Compass and Jeep Wagoneer S EV. Although workers at the Mexican plant will still report to work due to contract terms, vehicle production will be paused.

“We are continuing to evaluate the impact of these tariffs on our operations but have decided to temporarily pause production at certain Canadian and Mexican assembly plants," said Antonio Filosa, Chief Operating Officer, Stellantis North America, in an email to employees.

In addition to the production suspension, Stellantis will temporarily lay off approximately 900 workers at five powertrain and stamping facilities in the United States that supply parts to the affected plants. 

"Stellantis continues to gamble with workers' livelihoods. These layoffs are entirely unnecessary and solely the company's decision," said Shawn Fain,  President, United Auto Workers (UAW) union.

The tariffs, which took effect Thursday, significantly increase costs for automakers importing vehicles into the United States. Previously, the base tariff for auto imports was 2.5%. Under the new system, companies importing vehicles from Canada or Mexico can deduct the value of US-made parts from the total tariff calculation. However, a complex formula determines the tax on parts used in Canadian and Mexican production if they originate outside North America.

Filosa emphasized the uncertainty surrounding the current business environment but assured employees that Stellantis is engaging with key stakeholders, including government officials, unions, suppliers, and dealers across the United States, Canada, and Mexico. The company is also undergoing a leadership transition, as it continues to search for a new CEO.

Stellantis expects to resume production at the Windsor facility on Apr. 21, but no specific date has been provided for the Toluca plant.