Stellantis Responds to US Tariffs with Temporary Layoffs

In a significant move, Stellantis NV has announced the temporary layoff of approximately 5,400 workers. This decision comes as the company halts production at two of its assembly plants located in Canada and Mexico. The layoffs are a direct response to the new US tariffs that have been imposed on the auto industry.

Impact on Employees and Production

The layoffs will affect around 4,500 hourly employees at the Windsor Assembly Plant in Ontario and about 900 US-based workers at supporting facilities. Operations at the Windsor plant will be suspended for two weeks, while the Toluca Assembly Plant in Mexico will cease production for the entire month of April. Mexican employees, although remaining on-site, will not be manufacturing vehicles during this period due to contractual terms.

Company's Statement on Tariffs

Antonio Filosa, Stellantis North America chief, has directly linked this decision to President Donald Trump's 25% automotive tariffs, which recently took effect. In an internal memo, Filosa stated, "We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions." This move mirrors similar actions taken by the company in Italy, highlighting the global impact of the tariffs.