Stellantis temporarily idles key North American plants

Stellantis $STLA ( ▲ 0.97% ) has announced that it’s temporarily pausing its Windsor Assembly Plant in Canada and Toluca Assembly Plant in Mexico following the enactment of auto tariffs.

Driving the news: In an email sent to employees seen by CNBC—the Windsor Assembly Plant in Ontario, Canada—which builds the Chrysler Pacifica and Dodge Charger Daytona EV—will be closed for two weeks, resulting in the temporary layoff of about 4,500 workers at the Canadian facility.

• Stellantis’ Toluca Assembly Plant in Mexico—which produces the Jeep Compass SUV and all-electric Jeep Wagoneer S—will close for the entire month of April, with workers reporting to the plant but not producing any vehicles. 

• The pause in production will result in the temporary layoff of about 900 workers in the U.S. at supporting plants. 

Between the lines: An email sent to a Stellantis dealer from a district sales manager—titled the “Made in the USA Attack Plan”—spotlights one approach being taken to try to mitigate inventory challenges associated with the tariffs.

The details: The email—obtained by Car Dealership Guy and dated April 3—urges the dealer to take advantage of current production scheduling opportunities for U.S.-built vehicles amid the potential of plants closing—zeroing in on a few specific models. 

• Jeep Gladiator is a top priority unit with a “big opportunity” in incremental incentive escalation on Rubicon/Mojave.

• There will be some additional buildouts of the Ram Light Duty, with several constraints that will impact lower trims.

• The email also urges dealers to prioritize Ram Heavy Duty and ProMaster orders, noting there are plenty of open slots for HD trims in the district’s inventory.

Bottom line: While Stellantis currently has high inventory levels, temporary plant shutdowns raise concerns about how long that buffer will last. Dealers are watching closely, knowing that today’s supply cushion could erode quickly if production delays persist.

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