Stellantis pauses production in Mexico and Canada due to U.S. tariffs

Stellantis, the world's fifth largest automaker, announced that it will temporarily lay off 900 workers at five US facilities and will halt production at its assembly plants in Windsor, Canada, and Toluca, Mexico, as a result of the tariffs imposed on the automotive sector.

The Windsor Assembly plant, where the Chrysler Pacifica and Voyager minivans and the Dodge Charger Daytona are assembled, will suspend operations for two weeks starting April 7. In the case of Toluca Assembly, which manufactures the Jeep Compass and Wagoneer S EV, the suspension of activities will also begin next Monday and will continue throughout April.

The measure is in response to the imposition of a 25% tariff on vehicles imported into the United States, a policy promoted by President Donald Trump. Although vehicles and auto parts that comply with the Treaty between the United States, Mexico and Canada (USMCA) are exempt, the process for evaluating what non-US content will be subject to the tax has not yet been defined.

“The medium- and long-term effects of these tariffs on our operations are still being evaluated. But we have also decided to take some immediate actions, including the temporary discontinuation of production at some of our Canadian and Mexican assembly plants,” Stellantis' chief operating officer for the Americas, Antonio Filosa, noted.

The temporary layoffs in the United States will affect two stamping plants in Michigan and a transmission plant in Indiana. These facilities supply components to the Windsor and Toluca plants.

In an email from Antonio Filosa sent to employees, he stated that Stellantis will adapt quickly to the policy changes imposed by Trump. He noted that the actions the company is taking are necessary given the current market dynamics.

“We understand that the current environment creates uncertainty. Rest assured that we are very engaged with all of our key stakeholders, including government leaders, unions, suppliers and dealers in the U.S., Canada and Mexico, as we work to manage and adapt to these changes,” he said.

In this regard, Stellantis, like Ford and General Motors, has requested a reduction in customs tariffs for cars imported from Mexico and Canada, where these companies have multiple production plants.

In Mexico, the suspension of activities in Toluca could have a significant impact on the country's automotive industry.

Stellantis is responsible for the production of two of the ten most exported models to the United States, including the Jeep Compass assembled in Toluca and the RAM 2500, manufactured in Ramos Arizpe, Coahuila.

Stellantis' actions reflect the uncertainty in the automotive sector in light of the new U.S. trade policies, which could influence future investment and production decisions in North America.