Stellantis is temporarily halting production at some of its auto assembly plants in Canada and Mexico. This decision is tied to recent tariffs, and it will also lead to layoffs for some workers in the U.S.
In total, around 900 workers—who are mostly involved in producing powertrains and stampings—will be affected. These layoffs will hit employees at five plants in the Midwest: Warren Stamping and Sterling Stamping in Michigan, along with three more in Kokomo, Indiana.
The good news is that most of these workers won’t lose their pay immediately due to union protections. However, there’s a risk of pay loss if the shutdowns in Canada and Mexico extend longer than anticipated.
Stellantis’ assembly plant in Windsor, Ontario, which makes popular models like the Chrysler Pacifica and Dodge Charger, will close for two weeks, affecting 4,500 workers. Similarly, the Toluca plant in Mexico, known for producing the Jeep Compass and electric Wagoneer, will also stop operations for the rest of April. This plant employs around 2,400 workers.
Antonio Filosa, Stellantis’ chief operating officer for the Americas, noted they are still evaluating the tariffs’ long-term impact on their operations. He acknowledged that these decisions are significant and necessary under the current market conditions, and he reassured employees about their commitment to work with all stakeholders, including the government and unions.
The move drew sharp criticism from the United Auto Workers union. President Sean Fain expressed that Stellantis is “playing games with workers’ lives,” labeling the layoffs as an unnecessary choice that reflects a flawed trade system. He emphasized that workers shouldn’t be collateral damage in corporate decisions.
Interestingly, despite Fain’s past criticism of President Trump, the union has backed his tariff policy, hoping it might lead to a shift of auto production back to U.S. plants. However, such a shift would take considerable time—potentially months or years.
In Canada, the union representing workers, Unifor, also slammed Stellantis’s actions. President Lana Payne pointed out that the impact of U.S. tariffs on autoworkers was predictable, as they warned this would create immediate consequences for jobs.
With these events unfolding, it’s clear the auto industry faces significant challenges. A recent survey from the Automotive Industry Action Group noted that 78% of automotive professionals believe tariffs could negatively impact production costs and job security. This situation underscores the interconnectedness of the North American auto production system, emphasizing the importance of cooperative policies and practices.
For more details on industry trends and economic impacts, you can check out the Automotive Industry Action Group.
Check out this related article: Trump’s Sweeping Tariff Announcement Sends Global Stock Markets Tumbling and Dollar Plunges: What It Means for Your Investments
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