Stellantis starts temporary layoffs amid US tariffs’ impact
Press Hub UCapital
Share:
Stellantis stated on Thursday that it has temporarily laid off 900 workers at five plants following new US global tariffs' announcement. Additionally, production has also been temporarily suspended at two assembly plants in Mexico and Canada.
The impact of US tariffs is already starting to be felt: the Toluca plant in Mexico, which produces two Jeep models, will be closed for the entire month of April, while the Windsor Assembly plant in Canada will be closed for only two weeks. However, the closure of these plants has affected production at five US facilities, where essential components like engines and transmissions are made.
This production interdependence has forced Stellantis to temporarily lay off 900 workers employed at the Warren, Sterling Heights, and Kokomo plants. The company stated that its current priority is to assess the effects of US tariffs on imported vehicles, while continuing to engage with the Trump administration regarding the ongoing changes.
Meanwhile, Fitch Ratings has downgraded Stellantis’ rating from BBB+ to BBB, explaining that it's based on the deterioration of the North American market conditions and increased cost pressures caused by tariffs targeting the automotive industry.
The impact of US tariffs is already starting to be felt: the Toluca plant in Mexico, which produces two Jeep models, will be closed for the entire month of April, while the Windsor Assembly plant in Canada will be closed for only two weeks. However, the closure of these plants has affected production at five US facilities, where essential components like engines and transmissions are made.
This production interdependence has forced Stellantis to temporarily lay off 900 workers employed at the Warren, Sterling Heights, and Kokomo plants. The company stated that its current priority is to assess the effects of US tariffs on imported vehicles, while continuing to engage with the Trump administration regarding the ongoing changes.
Meanwhile, Fitch Ratings has downgraded Stellantis’ rating from BBB+ to BBB, explaining that it's based on the deterioration of the North American market conditions and increased cost pressures caused by tariffs targeting the automotive industry.