**North America**: Stellantis announces temporary production shutdowns at factories in Windsor and Toluca, affecting 900 workers. This decision follows a 25% tariff on imported vehicles by the US administration. The automotive sector braces for further adjustments as the trade landscape shifts.
Stellantis has announced a temporary cessation of production at two of its North American factories, a direct consequence of newly imposed tariff rates by the administration of President Donald Trump. This policy includes a 25% tariff on imported vehicles, effective from April, and is perceived as a measure aimed at strengthening local manufacturing. The ramifications of this decision have led to the temporary layoff of 900 workers across several American facilities.
The affected production facilities are located in Windsor, Canada, and Toluca, Mexico. Production at the Windsor plant, which assembles models including the Chrysler Pacifica, Voyager, and Dodge Charger Daytona, will be suspended for a duration of two weeks starting from April 7. Meanwhile, operations at the Toluca facility, which produces the Jeep Compass and Wagoneer S, will halt completely for the month.
As a result of these production stoppages, the impact will extend to Stellantis’s operations in the United States, specifically affecting five factories in Michigan and Indiana. The Warren Stamping and Sterling Stamping plants in Michigan, along with three sites in Kokomo, Indiana, are set to experience temporary layoffs, sidelining a total of 900 employees, at least for the coming weeks.
In an internal communication to staff, Antonio Filosa, the North America operations chief at Stellantis, indicated that these adjustments were necessary given the current market dynamics. He reassured employees that the situation is being closely monitored.
The halt in production by Stellantis is echoed across the automotive sector, prompting other manufacturers to adjust their strategies. Ford, for instance, has rolled out a discount programme aimed at mitigating the expected price increases linked to the new tariffs. Stellantis has also introduced a sales initiative aimed at consumers that typically applies only to employees, in an effort to bolster consumer confidence amidst rising inflation and interest rates, which have already begun to impact vehicle sales.
In reaction to the changing trade landscape, the Canadian government has introduced corresponding tariffs on vehicles imported from the United States, although Mexico has yet to impose similar measures.
This situation underscores the complicated interplay within the North American automotive industry, where production facilities across the United States, Canada, and Mexico are interconnected. Changes in trade policies can have profound implications, not only for production lines but also for the workforce reliant on these operations. The full extent of the impacts stemming from these recent developments is anticipated to unfold in the days and weeks ahead.
Source: Noah Wire Services
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