Tariff Response: Stellantis To Pause Production and Institute Temporary Layoffs

Stellantis said the Ontario plant would close for two weeks starting Monday, April 7, but the Toluca, Mexico facility, where 2,600 people work, will close for at least the entire month of April. The automaker will also lay off around 900 people in the U.S., impacting plants in Michigan and Indiana.

In a statement, the company said, “We will continue to monitor the situation to assess whether further action is required. Stellantis continues to assess the effects of the recently announced U.S. tariffs on imported vehicles and will continue to engage with the U.S. administration on these policy changes.”

While some American union autoworkers praised the tariffs, their counterparts to the north weren’t so happy. The Canadian autoworker’s union, Unifor, released a statement saying, “Trump is about to learn how interconnected the North American production system is the hard way, with auto workers paying the price for that lesson.”

Stellantis has significant manufacturing and business operations in Canada, with about 9,000 people working in Ontario alone. The temporary shutdown will impact more than just the automaker’s employees, as Canada holds hundreds of automotive suppliers whose operations will be disrupted. Many expect trickle-down layoffs to occur at those facilities, though it’s unclear how many jobs could be impacted.

[Images: Stellantis]

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