The Stellantis Windsor Assembly Plant is depicted on April 1, 2025, in Windsor, Canada.
DETROIT — Stellantis has announced a halt in production at two of its assembly plants located in Canada and Mexico, as the company adapts to President Donald Trump‘s new 25% automotive tariffs, the company confirmed on Thursday.
This decision marks the most immediate and significant response by any automaker to the new tariffs, which became effective on Thursday and apply to all vehicles imported into the U.S., including those from Canada and Mexico.
The production downtime will commence on Monday, lasting for two weeks at the Windsor Assembly Plant in Ontario, while the Toluca Assembly Plant in Mexico will suspend production for the entirety of April.
Due to this production interruption, approximately 900 employees in the U.S. whose roles support the affected plants will be temporarily furloughed, in addition to around 4,500 hourly workers at the Canadian facility. Workers at the Mexican plant will still report for duty but will not be assembling vehicles due to contractual obligations, according to a company spokesperson.
In an email sent to staff on Thursday, Stellantis North American chief Antonio Filosa highlighted that the temporary shutdown is a direct consequence of the tariffs, and the company is currently exploring its options.
“We are constantly evaluating the medium- and long-term implications of these tariffs on our operations,” Filosa noted, “but have decided to implement some immediate measures, including the temporary suspension of production at select assembly plants in Canada and Mexico.” He added that these changes will impact some employees at various U.S. powertrain and stamping facilities that support these operations.
The Canadian facility manufactures the Chrysler Pacifica minivan and the newly launched Dodge Charger Daytona EV, while the Mexican plant produces the Jeep Compass SUV and the Jeep Wagoneer S EV.
Filosa acknowledged that the “current environment is uncertain,” but he reassured staff that the company, which is in search of a new CEO, remains “very active in engaging with all of our key stakeholders, including senior government officials, unions, suppliers, and dealers across the U.S., Canada, and Mexico.”
Stellantis, the automaker formed from the merger of Fiat Chrysler and PSA Group, has recently announced a temporary halt in production at two of its assembly plants, one located in Windsor, Ontario, Canada, and another in Toluca, Mexico, due to President Donald Trump’s newly imposed 25% automotive tariffs. This decision is among the most immediate and impactful responses to the tariffs, which came into effect on April 1, 2025, affecting all vehicles imported into the United States, including those from Canada and Mexico.
The production shutdown at Stellantis’s Windsor Assembly Plant is scheduled to last for two weeks, while operations at the Toluca Assembly Plant will pause for the entirety of April. These changes will result in significant layoffs, impacting approximately 900 workers at related U.S. facilities and about 4,500 hourly employees at the Canadian plant. Although workers in Mexico are expected to report to their jobs, production will effectively be halted due to contractual agreements.
In a communication to employees, Antonio Filosa, Stellantis North America’s chief, emphasized that the decision to pause production is directly linked to the new tariffs. He indicated that the company is actively assessing the medium- and long-term implications of these tariffs and felt it necessary to take immediate action to mitigate potential impacts. Filosa’s note highlighted the uncertainty of the current market environment and reassured employees that Stellantis remains engaged with various stakeholders, including government officials, unions, suppliers, and dealers across the U.S., Canada, and Mexico.
The Windsor plant is known for producing the Chrysler Pacifica minivan and the newly launched Dodge Charger Daytona electric vehicle (EV). Meanwhile, the Toluca plant is responsible for manufacturing the Jeep Compass SUV and the Jeep Wagoneer S EV, both of which are part of Stellantis’s strategic push towards electrification and innovation in the automotive sector.
Filosa noted the ongoing search for a new CEO, which adds another layer of complexity to the company’s situation during this tumultuous period. The action taken by Stellantis reflects the broader uncertainty faced by automakers in light of unpredictable federal policies and trade regulations that influence manufacturing and operational decisions across North America.
As the company navigates these challenges, it is likely to continue evaluating its approach, working closely with all stakeholders to find solutions that address both immediate operational challenges and longer-term business strategy in a post-tariff landscape. The interruptions in production at Stellantis not only highlight the company’s agility in responding to external pressures but also signal the significant impact of government tariffs on manufacturing operations within the automotive industry.
Overall, the decision to pause production serves as a critical reminder of the interconnectedness of global supply chains, manufacturing processes, and trade policies, illustrating how changes at the governmental level can have rapid and sweeping effects on industries that rely heavily on cross-border manufacturing. As such, Stellantis’s response to the tariffs will likely influence not only its immediate business operations but also set the tone for how other automakers may react to similar challenges in the future. The situation remains fluid as the company adapts to evolving conditions in the automotive market and regulatory environment.
