Stellantis NV Temporarily Lays Off Thousands

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 an additional 900 US-based workers at supporting facilities. Production at the Windsor plant will be suspended for two weeks, while operations at the Toluca Assembly Plant in Mexico will be halted for the entire month of April. Despite the halt in production, Mexican employees will remain on-site, albeit without manufacturing vehicles due to contractual obligations.

Company's Statement on Tariffs

Antonio Filosa, the North America chief of Stellantis, linked the layoffs directly to the 25% automotive tariffs announced by President Donald Trump, which took effect recently. 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.