Stellantis announces layoffs and pauses plants in wake of tariffs – Washington Examiner
Stellantis NV, an automotive company known for brands like Chrysler, Jeep, Fiat, and Dodge, has announced that it will pause production at certain assembly plants in Canada and Mexico due to newly implemented tariffs signed by President Donald Trump. The company also plans to temporarily lay off 900 workers in the U.S. following the announcement of what are being referred to as “Liberation Day” tariffs, which impose a 25% charge on cars imported to the United States. Affected plants include the Windsor Assembly Plant in Ontario, which will pause for two weeks, and the Toluca Assembly Plant in Mexico, which will halt production for the entire month of April. Stellantis’s North American chief, Antonio Filosa, emphasized the need for resilience and adaptability amid these challenging times. The United Auto Workers union has thus far remained silent on the production pauses but had previously expressed support for Trump’s tariffs. Other automakers, such as Ford, are also taking steps in response to the tariffs, including new marketing campaigns and pricing strategies to navigate the impacts on the automotive market.
Stellantis announces layoffs and pauses plants in wake of tariffs
Automaker Stellantis NV is pausing production at some of its assembly plants in Canada and Mexico following President Donald Trump’s signing of reciprocal tariffs. The company has also announced plans to temporarily lay off 900 U.S. workers, according to a report.
On Wednesday, Trump announced what have been dubbed ‘Liberation Day’ tariffs the U.S. would enact on other countries with 25% tariffs on cars imported to the U.S. Stellantis is best known for auto brands such as Chrysler, Jeep, Fiat, and Dodge.
“With the new automotive sector tariffs now in effect, it will take our collective resilience and discipline to push through this challenging time,” Stellantis North American chief Antonio Filosa wrote in an email on Thursday morning. “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.”
At least two assembly plants affected by this pause are the Windsor Assembly Plant, located in Ontario, Canada, and the Toluca Assembly Plant, in Mexico. The former plant’s pause will last for two weeks, while the latter’s will occur for the entire month of April. Both pauses will be enacted beginning Monday.
David Kelleher, the president of David Auto Group in Glen Mills, Pennsylvania, was upset over the 900 layoffs within the U.S.
“I hate to see them go,” he said, adding that several at Stellantis are his friends. He added, however, that he was unsurprised by how quickly this is happening, noting how many of the parts used to assemble cars come from other countries.
“So the prices are going to go up,” Kelleher explained on Fox Business’s Varney & Co. “When prices go up, volume goes down, revenues go down, and the factories are going to take the appropriate – and dealers are going to take it. There’s 20,000 American dealers. Fifty percent of the cars we sell in the United States are from other countries.”
The United Auto Workers union has yet to react to the plant’s pauses, though it did praise Trump’s 25% auto tariffs last month ahead of their going into effect. UAW President Shawn Fain defended the union’s praise for the tariffs, arguing that Trump’s past criticism does not affect its approval of them.
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Stellantis is not the only automaker taking action in response to Trump’s tariffs. Ford has also launched a new ad campaign titled “From America, For America,” which will include its employee pricing plan on most of its 2024 and ‘25 vehicle models through June 2. Rob Kaffl, the director of U.S. sales, said that Ford can offer these discounts due to a “very healthy stock” of vehicles available at dealerships.
The new ad portrays Ford as the most pro-U.S. auto producer, claiming that it assembles the most cars in the country and that this is not a coincidence but “a commitment.”
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