Stellantis, an automotive supplier, has paused production in certain parts of Canada and Mexico, leading to the temporary layoff of 900 hourly workers in Indiana and Michigan. This move follows the recent implementation of tariffs, which include a 10% baseline on all imports and a 25% rise on auto imports.
The new tariffs have significantly impacted the global auto industry, with Stellantis taking immediate action in response to these changes. The company has announced that production at the Windsor Assembly and Toluca Assembly plants will remain halted for the month of April, affecting over 4,000 employees. Additionally, the company has temporarily laid off nearly 1,000 U.S. workers from its powertrain and stamping facilities, as well as idling production in Canada and Mexico.
The company stated that it continues to evaluate the long-term effects of these tariffs on its operations and will take further actions as necessary. Stellantis also mentioned its efforts to manage the impacts on workers while navigating the broader economic consequences of the tariffs.
In the wake of these layoffs, Stellantis’ shares fell 9.3% in New York on April 3, with other major automakers such as General Motors, Ford, and Tesla also seeing declines in their stock prices. The facilities affected by the layoffs include Stellantis’ Warren Stamping and Sterling Stamping plants, as well as the Indiana Transmission Plant, Kokomo Transmission Plant, and Kokomo Casting Plant.
While some have expressed concerns about the impact of the tariffs on U.S. workers, the White House has yet to comment on the situation. Worker unions and industry leaders are monitoring the situation closely, raising questions about the long-term viability of these policies and their potential to address the broader issues of job creation in the U.S. auto industry.
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