Automaker Stellantis (STLA) Halts Work at Canadian Plant as U.S. Tariffs Loom

Stellantis (STLA) has stopped work on its assembly plant in Canada as the threat of U.S. import tariffs hangs over the North American auto sector.

Unifor, a union representing Canadian autoworkers, says it is concerned by Stellantis’ unexpected decision to halt work at its Brampton Assembly Plant outside of Toronto. The automaker, which is behind the Chrysler, Dodge, and Jeep brands, had been retooling the assembly plant to make both electric and gas Jeep Compass vehicles starting later this year.

But now, Stellantis has ordered that all work to retool the assembly plant be stopped until further notice. The union says Stellantis has reassured it that production plans are still in place for the Brampton plant. However, the union says it is worried about the timing of the pause coming as it does with U.S. President Donald Trump threatening to impose 25% tariffs on all auto imports starting on April 2.

Growing Uncertainty

Unifor says the threat of tariffs and the repeal of electric vehicle initiatives are creating chaos in the North American auto industry that spans Canada, the U.S., and Mexico. Stellantis has not commented publicly about the work stoppage at the Ontario assembly plant.

However, Ford Motor Co. (F) CEO Jim Farley has said that Trump’s planned import tariffs will “blow a hole” in the North American auto industry. Stellantis’ Canadian manufacturing plant, which has been down for retooling since early 2024, previously had about 3,000 employees working at it. STLA stock has declined 42% over the last 12 months.

Is STLA Stock a Buy?

The stock of Stellantis has a consensus Moderate Buy rating among 13 Wall Street analysts. That rating is based on five Buy, seven Hold, and one Sell recommendations issued in the last three months. The average STLA price target of $14.39 implies 1.73% upside from current levels.

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