The automaker Stellantis temporarily interrupts production in a Canada factory and a Mexico factory shortly after President Donald Trump announced a 25% tariff on imported vehicles. This decision will result in the temporary layoff of 900 US employees.
Stellantis, which has car brands like Jeep, Citroën and Ram, will temporarily break at the Windsor assembly plant in Canada during the weeks of April 7 and 14. The operations will resume in the establishment the week of April 21.
The company will also temporarily break at the Toluca assembly plant in Mexico for the month of April, from April 7.
Due to the production break, there will be temporary layoffs in the Warren and Sterling stamping factories in Michigan and in the transmission factories of Indiana and Kokomo and a Kokomo casting installation in Indiana.
Stellantis plans to permanently monitor the situation to determine whether additional action is necessary.
In an email from the North American Operation Head, Antonio Filosa, sent to employees, Filosa said that Stelllantis would quickly adapt to the policy changes imposed by Trump. He noted that the actions that the company undertakes “is necessary given the current dynamics of the market”.
“We understand that the current environment creates uncertainty,” wrote Filosa. “Rest assured that we are very committed to all our main stakeholders, including the main government leaders, unions, suppliers and dealers in the United States, Canada and Mexico, while we are working to manage and adapt to these changes.”
At the end of the monthAssetsaid that he placed 25%Automobile import pricesa move that the White House claimed would promotedomestic manufactureBut could also put financial compression on car manufacturers which depend on world supply chains.
Stellantis also faced some of his own challenges. In December CEOCarlos Tavaresresigned in the middle of aFighting the fall in sales.
North American operations in Stellantis have been the main source of profits from the company for some time, but the difficulties stood up last year, the company citing increasing competition and larger market changes.
In sales recovery efforts, Stellantis previously made aNumber of leadership changesIn October, which included the nomance of new operations leaders in North America and Europe.
In January, the company announced its intention toreopenAn Illinois assembly plant and build the next generation Dodge Durango in Detroit while it was trying to solve the problems with the UAW.
This story was initially presented on Fortune.com
