Stellantis temporary layoffs: 900 US employees being laid off, Canada plant paused

DETROIT (FOX 2) - Stellantis is laying off 900 workers at five U.S. plants in response to President Donald Trump’s tariffs, and also planning to pause production at its plants in Canada and Mexico.

Starting Thursday, a 25% tariff on all foreign-made cars and auto parts will take effect. Trump says the move will revive U.S. manufacturing and reset America’s trade agenda, but his policies risk a sudden economic slowdown as consumers and businesses could face sharp price hikes.

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Stellantis layoffs, production pauses

What we know:

Starting on Monday, Stellantis will pause production at its plant in Windsor for two weeks, according to spokesperson LouAnn Gosselin who talked to CBC News. 

Along with the temporary closure of the two plants, the company is also temporarily laying off 900 U.S. workers at its five powertrain and stamping plants in Warren and Sterling Heights.

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In a email from North American Chief Operating Officer Antonio Filosa sent to employees, Filosa said that Stellantis will quickly adapt to the policy changes imposed by Trump. He noted that the actions that the company is taking "are necessary given the current market dynamics."

"We understand that the current environment creates uncertainty," Filosa wrote. "Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers in the U.S., Canada, and Mexico, as we work to manage and adapt to these changes."

The Stellantis plant just across the Detroit River builds the Chrysler Pacifica and the Dodge Charger Daytona and employees roughly 4,500 workers.

Likewise, in Mexico, Stellantis is closing the Toluca Assembly plant for the month of April. The Toluca plant is where the Jeep Compass and Jeep Wagoneer S are made.

What we don't know:

It’s unclear how long the U.S. employees will be laid off, and whether other car manufacturers are planning similar actions in response to the tariffs. 

It's also unknown what the layoffs could do the economy in Ontario. Stellantis is the largest employer of the city – with more than twice the number of workers on its payroll than the next closest company, Caesars Windsor.

Stellantis challenges

Dig deeper:

Stellantis has also been dealing with some of its own challenges. In December CEO Carlos Tavares stepped down amid an ongoing struggle with slumping sales.

Stellantis’ North American operations had been the company’s main source of profits for some time, but struggles piled up last year, with the company citing rising competition and larger market changes.

In efforts to revive sales, Stellantis previously made a number of leadership changes in October, which included naming new heads of operations in North America and Europe.

In January the company announced plans to reopen an assembly plant in Illinois and build the next generation Dodge Durango in Detroit as it looked to resolve issues with the UAW.

What they're saying:

"Stellantis continues to assess the effects of the recently announced U.S. tariffs on imported vehicles and will continue to engage with the U.S. administration on these policy changes," Gosselin said in a statement to CBC News.

"Immediate actions we must take include temporarily pausing production at some of our Canadian and Mexican assembly plants, which will have an impact to several of our U.S. powertrain and stamping facilities that support those operations," the statement added.