Automaker Stellantis (STLA) has announced that it is idling production at two vehicle assembly plants in Canada and Mexico as the company assesses the impact of U.S. President Donald Trump’s 25% automotive tariffs.
Stellantis, the company behind nameplates such as Chrysler, Dodge and Jeep, said that it is pausing for two weeks production at the automaker’s Windsor Assembly Plant in Canada across a river from Detroit, Michigan. The company is also pausing for a month production at its Toluca Assembly Plant in Mexico.
News of the shutdown comes after Trump confirmed 25% tariffs on all foreign made vehicles and said that further tariffs on imported automotive parts start on May 3. The production pause in Canada and Mexico will result in the temporary layoffs of roughly 900 U.S.-based employees at supporting plants, in addition to roughly 4,500 hourly workers at the Canadian plant.
Workers at the plant in Mexico will still report to the facility but not produce any vehicles due to their current contract terms, said Stellantis.
Immediate Impact
In an email to employees , Stellantis North American head Antonio Filosa said the plant downtime is tied to the tariffs, as the company reviews its options. “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, including temporarily pausing production at some of our Canadian and Mexican assembly plants,” reads the email.
The Canadian plant produces the Chrysler Pacifica minivan and the recently released Dodge Charger Daytona electric vehicle (EV). The Mexico plant produces the Jeep Compass SUV and Jeep Wagoneer S electric vehicle. News of the auto tariffs comes despite fierce lobbying on the part of automakers to delay or cancel the import duties.
STLA stock has declined 14% so far this year.
Is STLA Stock a Buy?
The stock of Stellantis has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on six Buy, 11 Hold, and one Sell recommendations issued in the last three months. The average STLA price target of $14.04 implies 31.77% upside from current levels.
