Business

Stellantis Announces Temporary Layoffs of 5,400 Workers Due to New US Tariffs on Auto Industry

Stellantis NV Temporarily Lays Off 5,400 Workers

In response to new US tariffs targeting the auto industry, Stellantis NV has announced temporary layoffs affecting approximately 5,400 workers. This decision comes as the company halts production at two assembly plants located in Canada and Mexico.

Impact on Canadian and Mexican Plants

The layoffs include about 4,500 hourly employees at the Windsor Assembly Plant in Ontario and 900 US-based workers at supporting facilities. Operations in Windsor will be suspended for two weeks, while the Toluca Assembly Plant in Mexico will halt production for the entire month of April. Mexican employees will remain on-site but will not manufacture vehicles due to contractual terms.

Direct Link to President Trump's Tariffs

Antonio Filosa, Stellantis North America chief, directly attributed this decision to President Donald Trump's 25% automotive tariffs, which took effect recently. "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," Filosa stated in an internal memo. This move mirrors a similar action taken by the company in Italy.