The announced 25% tariffs on imports to the USA of products from Canada and Mexico, announced by the 47th President of the United States Donald Trump, will affect Stellantis’ production management in both mentioned countries. Although the measure regarding the imposition of such customs duties has not yet been signed, given that they have nevertheless been announced by Trump himself, if such a condition becomes reality, it would generate a real trade war between the United States of America and the two countries involved: Mexico and Canada.
Stellantis employs thousands of workers in its production sites in Canada and Mexico
The auto sector could suffer deleterious effects in terms of imports, at least for those products derived from production carried out in Canada and Mexico. Among the major competitors that would be affected by such consequences is certainly Stellantis. The Group, born from the merger between FCA and PSA, produces about 40% of its total vehicles introduced into the United States in Canada and Mexico. The risks associated with introducing tariffs of 25% would also mean putting some models that Stellantis produces in the two countries involved out of the market, with the possible consequence of even leading to the closure of some plants.
Both in Canada and Mexico, Stellantis employs thousands of workers engaged in production sites in their respective countries. In Mexico, the Group has the Toluca production site where 2,676 workers are employed in the assembly of Jeep Compass, Wagoneer S, and Recon. In Saltillo, they produce 3.0-liter twin-turbo 6-cylinder engines used in the Ram 1500, Jeep Wagoneer L, and Grand Wagoneer L, as well as the well-known 6.4-liter Hemi V8 available for Ram Heavy Duty 2500 and 3500.
Also in Saltillo, they assemble 3.6-liter Pentastar V6 units used for Jeep Grand Cherokee, Jeep Grand Cherokee L, Jeep Wrangler and Wrangler Unlimited, Ram 1500, Chrysler Pacifica, Chrysler Grand Caravan, and Dodge Durango alongside the PHEV variant used in the Chrysler Pacifica Hybrid. The Ram Heavy Duty and Ram ProMaster are also produced here.
Regarding Stellantis’ Canadian production, its main production facility is in Windsor, where 4,200 workers are employed dedicated to Chrysler Pacifica, Voyager, and Grand Caravan, as well as the new Dodge Charger. Recently in Windsor and Brampton, the Group had announced investments of $2.8 billion for adapting the lines to manage the new models produced.
In Windsor, Stellantis has started battery production, with an annual capacity of 49.5 GWh, at the local Gigafactory developed in collaboration with LG Energy Solution. Also in Canada, Stellantis has the aforementioned Brampton plant, where the new generation of Jeep Compass will be produced, employing 4,000 workers, plus approximately 260 employees at the Etobicoke foundry dedicated to producing aluminum blocks for engines.
Meanwhile, Stellantis, after President John Elkann met with Donald Trump, has announced that it will reopen the Belvidere plant where a mid-size pickup, probably from Ram, will be produced, and the Dodge Durango will be produced in Detroit, whereas previously Canada was being discussed.