Stellantis confirmed the upcoming downtime, which will begin on Monday. The assembly plant in Windsor, Ontario, Canada, will halt production for two weeks, while the Toluca Assembly Plant in Mexico will remain idle throughout April. As a consequence, around 900 employees in U.S.-based support roles will face temporary layoffs, along with approximately 4,500 hourly workers at the Windsor plant. However, employees at the Mexican facility will continue to report for work but will not be manufacturing vehicles due to contract stipulations.

Antonio Filosa, the North American chief of Stellantis, emphasized in an email to employees that the production halt is directly linked to the tariffs as the company evaluates future strategies. “We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions,” he stated.

The announcement had a tangible effect on Stellantis’ stock performance, with shares falling by 9.4%, marking the company’s most significant drop since September. The Windsor plant is responsible for manufacturing models such as the Chrysler Pacifica minivan and the newly launched Dodge Charger Daytona EV, while the Toluca facility produces the Jeep Compass SUV and Jeep Wagoneer S EV.

Lana Payne, the President of Unifor, the union that represents the workers in Canada, criticized the tariffs, asserting that they would have immediate adverse effects on labor. “Unifor warned that U.S. tariffs would hurt auto workers almost immediately,” she noted, highlighting the interconnectedness of North American automobile production and the risks associated with tariff policies.

As Stellantis faces challenges due to the new tariffs, competitors like General Motors and Ford have taken different approaches. GM plans to ramp up pickup truck production at a plant in Indiana, a tactic not directly linked to the tariffs, as they bolster their workforce ahead of expected seasonal absences. Meanwhile, Ford has opted to offer its employee discounts to all customers in response to market uncertainty, with a sales program set to run from April 3 through June 2.

Ford’s initiative, which is branded as “From America, For America,” aims to provide considerable savings to customers while navigating the implications of the tariffs. The company acknowledged that these are uncertain times and had enough retail inventory to support the sales effort.

The decision by Stellantis to pause production illustrates the immediate impacts of policy changes on the automotive industry and its workforce. As the company assesses the long-term ramifications of the tariffs, the ongoing developments in both the market and company strategies will be closely monitored by employees, investors, and stakeholders throughout the North American automotive landscape.