Stellantis to temporarily lay off 900 US workers as tariffs bite
Stellantis NV (STLAM.MI), opens new tab said on Thursday it was temporarily laying off 900 workers at five U.S. facilities and pausing production at one assembly plant each in Mexico and Canada, after U.S. President Donald Trump's tariffs were announced.
Trump broadened the tariffs to a 10% baseline on all imports on Wednesday, with higher rates for some countries. These levies followed 25% duties on all auto imports announced last week, which sent shock waves through the global auto industry.
In a letter sent to employees on Thursday morning, Antonio Filosa, Stellantis' chief operating officer for the Americas, said the company is "continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions."
These included temporarily pausing production at some Canadian and Mexican assembly plants, affecting jobs at several of Stellantis' U.S. powertrain and stamping facilities, he said...
About 4,500 workers at Windsor will be impacted by the idling. Workers at Toluca will continue to report to work and get paid but will not make vehicles, according to the company.
"A horrifying consequence of Trump's tariffs," Democratic U.S. Senator Chuck Schumer said on X, referring to the job cuts. "American workers are paying the price."
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"Unifor warned that U.S. tariffs would hurt auto workers almost immediately and in this case the layoffs were announced before the auto tariff even came into effect. Trump is about to learn how interconnected the North American production system is the hard way, with auto workers paying the price for that lesson.”
United Auto Workers President Shawn Fain said in a statement that Stellantis has "got the money, the capacity, the product, and the workforce to employ thousands more UAW members in Michigan, Indiana, and beyond. These layoffs are a completely unnecessary choice that the company is making."