The multinational automaker Stellantis has temporarily suspended production at its assembly plants in Canada and Mexico in response to the 25 percent U.S. tariffs on imported vehicles.
The company announced the production halt on Thursday, the same day the tariffs on all vehicles imported to the U.S. took effect, fueling widespread concern among industry professionals about potential income losses and growing uncertainty for the sector.
The shutdown will begin on Monday for two weeks at Stellantis' Windsor Assembly Plant in Ontario, Canada. It will last for the entire month of April at its Toluca Assembly Plant in Toluca, Mexico.
As a result, approximately 900 workers at the company's U.S. powertrain and stamping facilities will be temporarily laid off. Around 4,500 workers at Windsor will also be impacted by the production halt. Meanwhile, workers at Toluca will continue to report for work but will not be involved in vehicle production, though they will still be paid.
Stellantis' facility in Toluca has been a fixture since 1968, providing employment for roughly 3,000 people and producing the Jeep Compass and Jeep Wagoneer S. This production pause has raised concerns among both local residents and industry professionals about the future of Mexico's automotive industry.
"There will be an impact. Factory revenues will decrease, and people will lose their income," said Octavio Leyes, a local car dealer.
Guillermo Rosales Zarate, executive president of the Mexican Association of Automotive Dealers (AMDA), echoed these worries.
"We are now in a period of uncertainty, and Mexico's economy, particularly the automotive industry, still faces significant risks," he said.
Mexican President Claudia Sheinbaum reassured on Friday that the temporary closure of Stellantis' plant in Mexico would not lead to job losses in the country.
She also noted that economic minister Marcelo Ebrard had discussions with Stellantis to gather more details on the situation.
Earlier, the president announced that Ebrard would travel to the U.S. next week to discuss the tariffs' impact on automotive and the steel and aluminum industries, which are not covered by the United States-Mexico-Canada Agreement (USMCA).
Although U.S. President Donald Trump initially announced a 25 percent tariff on all imports from Canada and Mexico, he later agreed to suspend tariffs on products covered by the USMCA.
Stellantis halts production in Canada and Mexico amid U.S. tariffs, raising concerns
Stellantis halts production in Canada and Mexico amid U.S. tariffs, raising concerns
