The Blubber

Stellantis (STLA), the parent company of Jeep, Chrysler, Dodge, and Ram, is temporarily suspending production at two of its North American factories in response to President Donald Trump’s newly implemented auto tariffs.

According to a report from The Wall Street Journal, the company will idle its minivan plant in Windsor, Ontario, for two weeks. Additionally, operations at its Jeep factory in Toluca, Mexico, will be halted for the remainder of April. The information was shared in an internal email by Stellantis North America chief Antonio Filosa.

The affected plants produce the Chrysler Pacifica minivan and Jeep Compass SUV. Filosa noted that the temporary shutdowns in Mexico and Canada may also impact workers in the United States who supply parts to those facilities.

In the email, Filosa wrote that Stellantis would “quickly adapt to these policy changes and will protect our company, maintain our competitive edge and continue delivering great products to our customers.”

Tariffs Hit Stellantis Stock

Stellantis shares dropped 7% to 10.45 within the first 90 minutes of trading Thursday. The stock had previously peaked at 29.51 in March 2024 but has been in a downward trend since, particularly after reporting a 97% drop in earnings per share and a 21% decline in revenue on February 26, according to IBD MarketSurge.

A new 25% tariff on automobile imports went into effect Thursday. While it had already been announced prior to Trump’s broader tariff rollout on Wednesday, it is separate from the newly imposed reciprocal tariffs on goods from dozens of countries.

UBS auto analyst Joseph Spak said in a client note Thursday that although parts exclusions under the USMCA trade agreement are still technically in place, “it’s less clear if this will hold” under the new tariff regime.