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Stellantis Announces Three-Week Plant Shutdown in Windsor Amid Tariff and Demand Challenges

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Stellantis Announces Three-Week Plant Shutdown in Windsor Amid Tariff and Demand Challenges
Global automaker Stellantis has announced a three-week shutdown for its Windsor, Ontario plant, starting later this month, due to tariffs and shifting consumer demand in North America. The company stated that the Windsor Assembly Plant will be idle during the weeks of October 19, 26, and November 2, following a two-week shutdown earlier this month. Over 6,400 employees at the facility were laid off for the previous two weeks and are scheduled to return to work on Monday. Stellantis cited 'evolving market conditions, including consumer demand and the impact of tariffs' as the primary reasons for the operational adjustments. The announcement comes amid ongoing contract negotiations between Stellantis and Unifor, the workers' union, which have reached a standstill. The impasse centers on the future of Stellantis' Brampton, Ontario plant, which the company has indicated it wants to sell due to 'market and trade conditions.' Unifor has criticized this plan as 'indefensible.' The union's Local 444 President, James Stewart, expressed concern over the additional downtime, stating it was 'something we didn't want to hear.' The collective agreement between Unifor and Stellantis expired on September 20, and workers are currently following the terms of the expired agreement. Stewart mentioned that the union is preparing a leaflet to update workers on the bargaining process and future expectations. The Windsor plant produces Chrysler Pacifica minivans and Dodge Charger muscle cars, and the company's casting plant in Etobicoke is also part of the negotiations. The situation reflects broader challenges in the automotive industry, with U.S. tariffs impacting Canadian manufacturers and trade relations between Canada and the United States. Stellantis' decision to idle the Windsor plant highlights the company's strategic response to market pressures, while the unresolved contract talks underscore the tension between management and labor over the future of manufacturing operations in Canada.
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October 3, 2026 at 11:44 AM
Stellantis set to pause Windsor plant for two weeks due to tariffs #Stellantis #WindsorPlant #AutoIndustry
Stellantis set to pause Windsor plant for two weeks due to tariffs
Stellantis NV's Windsor Assembly Plant is expected to shut down for two weeks starting Monday in a move related to U.S. tariffs impacting the auto industry, the plant's union leader said. The factory builds the Chrysler Pacifica minivan and similar models for the U.S. and Canadian markets, as well as Dodge's new electric Charger Daytona muscle car. "While we had heard rumours of potential downtime, the company said there are multiple factors at play, with the primary driver behind the final decision being this afternoon's announcement from U.S. President Donald Trump of the U.S. tariffs," Unifor Local 444 President James Stewart wrote in a Wednesday evening social media post. More: Trump features Michigan auto workers at tariff unveiling "This has and continues to create uncertainty across the entire auto industry. This is not just affecting our plant — it’s impacting facilities in the U.S. and Mexico as well," he added. Tariffs of 25% on imported cars, as well as parts that don't qualify for the United States-Mexico-Canada Agreement, were set to go into effect just after midnight Thursday. Those will come on top of existing tariffs implemented by the Trump administration on steel and aluminum, and on certain nations such as China. Trump on Wednesday also announced sweeping reciprocal tariffs on countries set to begin soon, which would run 10% and higher, however those will not be charged in addition to the auto tariffs. Stewart wrote that more changes to the plant's schedule were expected in the coming weeks. "We understand the frustration and uncertainty this brings our members and their families," he said. "Your union is closely monitoring the situation and will continue to push for clarity and accountability from the company." Stellantis confirmed the Windsor pause but declined further comment. United Auto Workers officials — who have backed tariffs as a way of returning more manufacturing jobs to the United States — did not immediately provide additional details on U.S. Stellantis plants that could be affected by tariffs on Wednesday. Unifor in a news release on Wednesday called Trump’s auto tariffs “job-killing.” “Trump is gaslighting us, wanting us to be grateful for not having reciprocal tariffs imposed on Canada while he tries to pick off our domestic industries one by one. We won’t fall for it,” Unifor National President Lana Payne said. “Today’s announcement offers absolutely no relief to Canadian workers who are ready to fight for every job, every plant, every community in this U.S.-initiated trade war.” Payne called on Canada to reply to the United States with the “strongest possible response,” as it’s disproportionately affected by the announced tariffs. Sam Fiorani, vice president of global vehicles forecasting at AutoForecast Solutions, said more such plant pauses are sure to come, and he noted it will not be easy to replace that manufacturing capacity in the United States. It can take a year to two years to retool a factory, and easily three years to construct a new plant, he said — not to mention hundreds of millions, if not billions of dollars. “Placing tariffs on vehicles from Canada and Mexico was obviously going to lead to less choice and selection of vehicles,” he said. “Minivans and entry-level models are just the beginning. More plants are bound to follow without a U.S.-based replacement for it.” This article originally appeared on The Detroit News: Stellantis set to pause Windsor plant for two weeks due to tariffs
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April 3, 2025 at 2:20 AM
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April 3, 2025 at 3:11 AM