Stellantis—the carmaker behind brands like Chrysler, Dodge, and Jeep—is pausing production at two major North American assembly plants in Canada and Mexico, resulting in temporary layoffs at five U.S. facilities that supply them, the automaker confirmed in an internal email obtained by The Epoch Times.
The company will halt production at its Windsor Assembly Plant in Ontario, Canada, for two weeks starting April 7. In addition, the Toluca Assembly Plant in Mexico will be offline for the entire month of April, according to a message sent Thursday morning by Stellantis North America COO Antonio Filosa to all North American employees.
As a result of the pauses, Stellantis said it will temporarily lay off workers at stamping and transmission facilities in Warren and Sterling Heights, Michigan, and Kokomo, Indiana. According to a company official familiar with the decision, roughly 900 U.S.-based employees are expected to be affected by the layoffs.
“These are actions that we do not take lightly,” Filosa wrote, “but they are necessary given the current market dynamics. Together, I know we will rise to these new challenges, just as we have always done in the past, and we will emerge even stronger.”
The production pauses come less than one full day after President Donald Trump’s new 25 percent tariffs on imported automobiles took effect. An additional 10 percent baseline tariffs on all foreign goods are set to take effect on April 5. Higher import duties on car parts such as engines and transmissions will be implemented on May 3.
Although Canada and Mexico were not listed among the “worst offenders” for elevated reciprocal tariffs, their cross-border supply chains are subject to other existing levies, including border tariffs on auto parts and aluminum.
According to Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association, this is akin to “dodging a bullet into the path of a tank.”
Stellantis’ Windsor and Toluca plants produce popular vehicles, including the Chrysler Pacifica and Jeep Compass.
Both depend heavily on U.S.-made parts from facilities now idled. The company said it is still assessing the medium- and long-term impacts of the tariff regime and made clear the current production moves are a direct response to it.
The North American COO said the company is coordinating with unions, suppliers, and government leaders as it adapts.
Filosa praised March retail performance, calling it the best of the year so far for Jeep and Ram in the United States, and noted that the company had seen “consecutive monthly market share growth since January.”
The auto industry has been bracing for disruptions since reciprocal tariff plans were first floated in February. Analysts say the ripple effects will likely increase vehicle prices and reduce demand over time.
Cox Automotive Analysts estimate the new tariffs could raise the average price of a new car by $5,300, pushing more consumers toward used vehicles.
The White House has said the goal of the tariff strategy is to incentivize domestic manufacturing and rebalance trade deficits.
As of now, the Canadian plant is scheduled to reopen the week of April 21. The Mexican facility’s shutdown has no specified end date yet.
