Stellantis plans 900 temporary layoffs in US after Trump tariff announcement: report
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Stellantis NV, the company that manufactures Ram trucks and Jeeps, is reportedly laying off 900 workers at five U.S. facilities in response to President Donald Trump’s tariffs, according to multiple reports.
Reuters reports that Stellantis NV is also pausing production at assembly plants in Mexico and Canada.
Starting today, a 25% tariff on all foreign-made cars and auto parts will take effect. Trump says the move will revive U.S. manufacturing and reset America’s trade agenda, but his policies risk a sudden economic slowdown as consumers and businesses could face sharp price hikes.
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Stellantis layoffs, production pauses
FILE - Jeep Grand Cherokee's are unloaded at the Stellantis plant in Belvidere, Illinois on Thursday, November 30, 2023. (Photo by Kayla Wolf for The Washington Post via Getty Images)
What we know:
Stellantis spokesperson LouAnn Gosselin told Canada's CBC News that they are pausing production at its plant in Windsor, Ontario, for two weeks starting Monday. The Windsor plant is where the Chrysler Pacifica and the Dodge Charger Daytona are made. About 4,500 people work at the plant in Windsor, Ontario, which is located along the Canadian-U.S. border near Detroit.
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The Toluca Assembly plant in Mexico, where the Jeep Compass and Jeep Wagoneer S are made, will be shut down for the entire month of April.
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The 900 temporary layoffs in the U.S. are at five powertrain and stamping plants.
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What we don't know:
It’s unclear how long the U.S. employees will be laid off, and whether other car manufacturers are planning similar actions in response to the tariffs.
What they're saying:
"Stellantis continues to assess the effects of the recently announced U.S. tariffs on imported vehicles and will continue to engage with the U.S. administration on these policy changes," she said in a statement to CBC News.
"Immediate actions we must take include temporarily pausing production at some of our Canadian and Mexican assembly plants, which will have an impact to several of our U.S. powertrain and stamping facilities that support those operations," the statement added.
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The Source: This report includes information from Reuters, CBC News, The Associated Press and previous LiveNow from FOX reporting.