Stellantis is adjusting quickly to the latest U.S. tariff policies, announcing a one-week production halt at its Windsor, Ontario plant, while quietly repatriating some of its pickup truck production from Mexico to the United States.
Maximizing North American content to benefit from tariff discounts
The repositioning aims to circumvent new import tariffs imposed under the Trump administration, while taking advantage of recent adjustments to the Canada–United States–Mexico Agreement (CUSMA). Those modifications allow automakers to obtain tariff discounts based on the percentage of North American content in their vehicles.
According to Stellantis CFO Doug Ostermann, current models assembled in the U.S. contain around 80-percent CUSMA-compliant content. The goal is to increase that to 85 percent, which would absorb the remaining surcharges through a discount equivalent to 3.75 percent of the retail value in the first year, and 2.5 percent in the second year.
Persistent uncertainty regarding Canadian production
Meanwhile, Stellantis has confirmed that starting May 5th, the Windsor plant – which notably manufactures the new Dodge Charger and the Chrysler Pacifica – will stop production for one week, this after already having done the same for two weeks in April. No official explanation has been given for the new pause. The Unifor union, which represents workers at the site, says it hasn’t received any details.
How many pickup trucks will now be made in the U.S.?
Stellantis has not revealed how many additional pickup trucks will now be assembled south of the border. But the shift towards a more American supply chain suggests that further adjustments are to be expected to protect the group's profit margins in the face of volatile trade rules.