Now that the Trump administration has instituted its 25% tariffs against all imported vehicles, along with myriad other product tariffs, automakers are figuring out their next moves. For Stellantis, its first moves have been to idle plants and temporarily layoff employees all across North America. The plants included produce a wide array of vehicles, including some of the company’s big electric releases such as the Dodge Charger Daytona and Jeep Wagoneer S.
The Idled Plants
Stellantis confirmed to us that two major factories in Canada and Mexico are being idled. They include the Windsor Assembly Plant in Canada, and the Toluca Assembly Plant in Mexico. The former produces the Chrysler Pacifica and the Dodge Charger Daytona, while the latter produces the Jeep Compass and Wagoneer S. A letter Stellantis shared from Chief Operating Officer Antonio Filosa specifically noted the tariffs as the reason for the closures.
“With the new automotive sector tariffs now in effect, it will take our collective resilience and discipline to push through this challenging time. But we will quickly adapt to these policy changes and will protect our company, maintain our competitive edge, and continue delivering great products to our customers.”
Windsor will shut down starting April 7, and it will reopen starting April 21. The Toluca plant will also shut down on April 7, and it will be closed for the rest of the month. Stellantis did not give details to us about how employees will be affected at the plants. The Detroit News reports that 4,500 employees at the Windsor plant are temporarily laid off. As for the Toluca plant, which has a little more than 2,500 employees, Reuters reports that employees are still employed and paid, but won’t be producing cars.
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The Impact In The US
With these two assembly plants shut down, factories that support them are being slowed. Stellantis confirmed that five factories in the US will have temporary layoffs totalling 900 employees. The factories included are Warren Stamping and Sterling Stamping in Michigan, near Detroit, and the Kokomo Transmission Plant, Kokomo Casting Plant, and Indiana Transmission Plant in Indiana, north of Indianapolis. According to The Detroit News these plants aren’t fully shutting down, as they still provide parts to other factories that will remain up and running.
The Cars Involved
While the Wagoneer S and Charger Daytona have not been huge sellers so far, they’re still significant vehicles. They represent the first real attempt from Stellantis to launch EVs designed specifically for America. The Chrysler Pacifica and Jeep Compass, meanwhile, are major sellers. The Pacifica is practically the only model that Chrysler sells, along with its lower-cost twin, the Voyager. The Pacifica alone brought in 107,356 sales last year, and more than 32,409 in the first quarter of this year. The Jeep Compass is Jeep’s entry-level option, and it’s the third-best seller behind the Wrangler and Grand Cherokee. It sold 111,697 units last year and 31,730 this year.
Source: The Detroit News, Reuters
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