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A day after President Donald Trump announced new tariffs, Stellantis on Thursday said it has “paused production” at some of its auto plants, impacting facilities in Canada, Mexico and the US, CNN reported. The automaker announced that the production halt will lead to temporary layoffs of approximately 900 US workers.
According to the report, the layoffs will affect hourly employees at five plants in the US, including the Warren Stamping and Sterling Stamping plants in Michigan, as well as the Indiana Transmission Plant, Kokomo Transmission Plant, and Kokomo Casting Plant in Indiana. These workers produce powertrains and stampings for the affected plants in Canada and Mexico.
Stellantis’ assembly plant in Windsor, Ontario, which manufactures the Chrysler Pacifica and Voyager, along with the Dodge Charger Daytona, will be closed for two weeks starting Monday, the report said, adding that the assembly plant in Toluca, Mexico, which produces the Jeep Compass and the electric Wagoneer S, will also halt production for the remaining days of April.
The disruptions are being seen as a direct result of the tariff measures introduced by the US government, which have reportedly raised costs and forced companies to adjust their production schedules. Stellantis’ Chief Operating Officer for the Americas, Antonio Filosa, reportedly informed employees in a memo that the company is continuing to evaluate the medium- and long-term effects of the tariffs on its operations, but immediate actions were necessary to manage the impact on production.
“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, including temporarily pausing production at some of our Canadian and Mexican assembly plants,” Filosa said, according to CNN. “Those actions will impact some employees at several of our US powertrain and stamping facilities that support those operations.”
The layoffs and production halt mark the first signs of disruption in the automotive industry following the tariff announcement.
In the wake of Trump’s tariffs announcement, workers in the US and abroad are reportedly grappling with the immediate effects of the new trade measures, with analysts warning that further disruptions could follow if the tariffs remain in place or are expanded, potentially leading to additional job cuts and supply chain issues.
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