Stellantis faces 900 layoffs as tariff response impacts U.S. plants

Stellantis is temporarily halting production at certain assembly plants in Canada and Mexico in response to newly enacted U.S. tariffs on imported automobiles and parts. The move is expected to result in approximately 900 temporary layoffs at several of the company’s powertrain and stamping plants in the United States.

The tariffs, which took effect just after midnight, were announced last week by President Donald Trump and include a 25% tax on both imported vehicles and parts. Components that meet the qualifications of the United States-Mexico-Canada Agreement (USMCA) are temporarily exempt.

In an email to employees Thursday morning, Stellantis North America Chief Operating Officer Antonio Filosa cited the new tariffs as the reason for the production adjustments. While the message did not identify which plants would pause operations, reporting by The Detroit News confirmed that Windsor Assembly Plant in Ontario will idle for two weeks starting Monday. That facility builds the Chrysler Pacifica and Dodge Charger Daytona. Stellantis’ Brampton Assembly Plant in Ontario remains closed for retooling.

In Mexico, the Toluca Assembly Plant will halt production for the month beginning next week. The plant produces the Jeep Compass and the Jeep Wagoneer S. Stellantis’ Saltillo facility, which manufactures Ram heavy-duty trucks, will continue operating.

Filosa described the situation as a challenge but stated the company would adapt quickly to protect operations and product delivery. The temporary production stoppages in Canada and Mexico will affect multiple U.S.-based Stellantis plants that supply parts to those facilities.

Affected U.S. locations include stamping facilities in Warren and Sterling Heights, Michigan, along with three plants in Kokomo, Indiana: Indiana Transmission Plant, Kokomo Casting Plant, and Kokomo Transmission Plant. These facilities provide components to the Canadian and Mexican assembly plants, as well as to other Stellantis operations.

The Warren Stamping Plant will conduct temporary layoffs but will not fully idle, according to United Auto Workers Local 869 President Romaine McKinney III. Details regarding the scale of the layoffs have not been released.

Filosa emphasized that Stellantis is in communication with government officials, labor unions, suppliers, and dealers across North America as it responds to the policy shift.