Since Trump tariffs came along, all carmakers, including Stellantis are feeling the pinch
U.S President, Donald Trump had recently introduced reciprocal tariffs on almost every country in the world amounting to about half of what these countries impose on U.S products. Since then, many automakers have been feeling the negative effects of this and it has even led to some carmakers being forced to shut down plants and factories.
The most recent is the Stellantis group, which announced it would temporarily halt operations at two of its assembly plants in North America in response to the 25 percent automotive tariffs introduced by Trump. Starting soon, production will also be paused at the Windsor Assembly Plant in Ontario, Canada, for two weeks.
Moreover, the Stellantis Toluca Assembly Plant in Mexico will also suspend operations in April. While workers at the Mexican plant will still report to work daily, they will not be engaged in vehicle production, as per their contractual obligations. In addition to these plant shutdowns, Stellantis also laid off around 900 American workers and nearly 4,500 employees in Canada.
This temporary production halt also affects multiple other facilities in the U.S., including the Warren and Sterling stamping plants in Michigan, as well as the Indiana-based transmission plants and Kokomo Casting facility. These plants are crucial for producing parts that support vehicle assembly operations at the halted plants in Mexico and Canada.
On top of that, Antonio Filosa, the CEO of Stellantis North America, explained that the decision was made to evaluate the long-term effects of President Trump’s tariffs on the company’s North American operations.
In a memo to employees, Filosa stated, “We are continuing to assess the medium- and long-term effects of these tariffs on our operations. We have also decided to temporarily pause production at some of our Canadian and Mexican assembly plants, which will impact employees at several of our U.S. powertrain and stamping facilities.”
The temporary production pause and layoffs reflect the ongoing challenges faced by the automotive industry in North America as manufacturers adjust to trade tariffs and their economic impact. Stellantis continues to assess how the 25 percent automotive tariff will affect its operations, and whether further adjustments will be needed in the future.
We got all this from UPI and their full article is linked here. Thank you UPI for the information and images.
