Stellantis has disclosed plans to temporarily lay off 900 hourly workers across its five US facilities in response to newly implemented tariffs that have disrupted production and increased auto import costs. The layoffs are mainly due to the impact of a 10% baseline tariff on all imports, which has led to a 25% increase in auto imports.
The company will halt production at its Windsor Assembly plant in Canada for two weeks, affecting nearly 4,500 employees, but workers at the Toluca Assembly plant in Mexico will still report to work and receive their salaries. The tariffs have sent shockwaves through the global auto industry, with Stellantis struggling to maintain margins.
In a letter to employees, Stellantis stated that it would continue to assess the medium- and long-term effects of the tariffs on its operations but decided to take immediate action. The company’s shares also declined 9.3% in New York following the announcement.
This move contradicts Trump’s promise to bring jobs back to the US, as it has resulted in immediate job losses. Stellantis had previously initiated a voluntary buyout program for select US factory workers last month, which is being offered at facilities in Detroit, Ohio, and Illinois to reduce expenses ahead of potential challenges in 2024.
The five facilities affected by the layoffs are Warren Stamping, Sterling Stamping plants, Indiana Transmission plant, Kokomo Transmission plant, and Kokomo Casting plant. The tariffs have disrupted production across North America, leading to a significant impact on the company’s operations and its employees.
Source: https://finance.yahoo.com/news/stellantis-announces-900-us-worker-163458116.html