Stellantis is halting vehicle production at two North American assembly plants in direct response to President Donald Trump’s newly enacted 25% auto tariffs, making it the first automaker to take such sweeping action.
The automaker confirmed Thursday it will pause production starting Monday at its Windsor Assembly Plant in Ontario for two weeks and at its Toluca Assembly Plant in Mexico for the entire month of April. The move comes just as the tariffs, which apply to all imported vehicles—including those from U.S. trade allies Canada and Mexico—went into effect Thursday.
As a result, approximately 900 U.S. workers at supporting facilities will be temporarily laid off, along with about 4,500 hourly workers at the Canadian plant. Workers at the Mexico plant will still report to work due to contract requirements but will not produce vehicles.
In an email to employees, Stellantis North America Chief Executive Antonio Filosa explained that the company is pausing production to evaluate the long-term operational impacts of the tariffs. It is important to note that the Windsor plant builds the Chrysler Pacifica minivan and the new Dodge Charger Daytona EV, while the Toluca facility manufactures the Jeep Compass SUV and Jeep Wagoneer S EV.
Shares of Stellantis fell sharply Thursday, closing down 9.4% at $10.21, marking the stock’s worst day since September.
Furthermore, the Canadian autoworkers union, Unifor, condemned the tariffs and expressed concern over the immediate impact on workers. Stellantis, which is still searching for a new CEO, said it remains in talks with government leaders, unions, suppliers, and dealers in the U.S., Canada, and Mexico. The company also noted that the pause will help reduce excess vehicle inventory amid weaker sales.
However, General Motors (GM) and Ford responded to the tariffs with different strategies. GM confirmed plans to increase pickup truck production at its Indiana plant to support operations during the summer and meet demand for high-volume models, including the Chevrolet Silverado and GMC Sierra.
Ford announced it will offer employee pricing to all customers through a new sales program called “From America, For America.” The incentive runs from April 3 through June 2 and applies to most vehicles, excluding select high-demand models like the Ford Raptor and Super Duty trucks.
