Many prognosticators believe it will take some time for businesses to feel the full effects of the tariffs U.S. President Donald Trump implemented on April 2.
But one American(ish) car company isn’t wasting any time reorganizing its labor efforts to meet the moment.
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Stellantis (STLA) has had a rough few years since Fiat Chrysler merged with French conglomerate PSA Group in 2021, but things are about to get tougher for the company, whose stock was down more than 8% in afternoon trading Thursday, April 3.
Stellantis Detroit Assembly Complex-Mack in Detroit, Michigan could get a lot busier after the company’s latest decision.
Image source: Bill Pugliano/Getty Images
How American brand Chrysler became Stellantis
Chrysler has long been the third leg of the American car industry, known colloquially as the Big 3. But Chysler’s “Americaness” has been slowly dwindling for over a decade.
Before it became part of Stellantis in 2021, Chrysler became Fiat Chrysler after Italian auto manufacturer Fiat fully acquired it. Chrysler filed for bankruptcy in 2009 and ceded 20% to Fiat at the time.
All of this change came to a head at the end of 2024 when, after months of speculation, Stellantis CEO Carlos Tavares announced his resignation in December.
Related: Stellantis former CEO made huge mistake with popular Dodge car
Reports soon surfaced following his exit that there was internal static about how Tavares ran the business. Executives and employees at the company claimed Tavares had a European attitude about business that wasn’t compatible with the American way of working.
The most glaring sign of this disconnect was exposed during the summer of 2024. It is common practice for European workers and executives to take as much as a month off during these months; however, since problems were brewing at its operations in the U.S., Tavares announced that he was going to take time off during his month-long “summer break” to help alleviate problems at the ground level in North America.
Stellantis makes huge decision following tariffs
On Thursday, Stellantis, the parent company of Jeep, Dodge, Chrysler, and Ram, said it is temporarily halting production at its auto assembly factories in Mexico and Canada in response to the tariffs.
The Wall Street Journal reported that Stellantis will idle its minivan plant in Windsor, Canada, for two weeks and shutter its Jeep facility in Toluca, Mexico, for the rest of the month.
Related: Stellantis exec admits ‘anti-American’ mistake scared away buyers
Those factories produce the Chrysler Pacifica minivan and Jeep Compass SUVs sold in the U.S. The move could also impact factory workers in the U.S. who make the parts the factories use to complete their vehicles.
This illustrates just how interconnected the U.S. car industry is with its neighboring countries.
“With the new automotive sector tariffs now in effect, it will take our collective resilience and discipline to push through this challenging time,” Filosa told the Journal. “But we will quickly adapt to these policy changes and will protect our company, maintain our competitive edge, and continue delivering great products to our customers.”
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Whatever Stellantis decides to do in the coming months and weeks, the company needs a boost in the arm.
Earlier this week, Stellantis reported that total U.S. sales decreased 12% year-over-year despite a 16% increase in Ram brand sales and a 1% increase in Chrysler brand sales. Jeep brand sales saw a 2% increase.
The company reported total sales of 293,225 vehicles in the first three months of the year.
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