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Transport

Stellantis halts production at Canadian and Mexican auto plants to assess tariff impact

Stellantis NV (NYSE:STLA, EPA:STLA) announced that it has temporarily suspended operations at its Windsor Assembly Plant in Ontario, Canada, for two weeks starting April 7 as a direct response to US president Donald Trump's newly imposed 25% tariffs on imported vehicles and auto parts.

The automaker has also halted operations at its Toluca Assembly Plant in Mexico for the month of April, it was revealed on Thursday.

The Windsor plant, which produces the Chrysler Pacifica minivan, Grand Caravan, Voyager, and Dodge Charger Daytona EV, employs about 4,500 hourly workers.

Stellantis has stated that the shutdown is necessary to evaluate the impact of the tariffs on its operations.

“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,” Stellantis North America chief operation officer Antonio Filosa said in an email to employees.

“Those actions will impact some employees at several of our US powertrain and stamping facilities that support those operations.”

Trump’s tariffs apply to all foreign-made cars entering the United States, significantly disrupting the deeply integrated North American automotive supply chain.

Stellantis' US-listed shares had tumbled 9.3% to about US$10 on Thursday afternoon.

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