Dodge Charger Production Halt Announced on First Day of New Tariffs, Layoffs Commence

      Stellantis

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      Stellantis has suspended production of four models, including its most budget-friendly option, in response to the “Liberation Day” tariffs implemented by the federal government this week. According to The Detroit News, the Dodge Charger, Chrysler Pacifica, Jeep Compass, and Jeep Wagoneer S lines will be on hold for at least two weeks, with the subsequent effects likely to result in around 900 layoffs across several U.S.-based assembly lines, as indicated in an email obtained by the publication.

      Production has been halted immediately at both the company's Windsor Assembly in Ontario, Canada, and its Toluca Assembly Plant in Mexico. Windsor produces the Pacifica and Charger, while the Compass and Wagoneer S are made in Toluca. Operations in Windsor will be suspended for two weeks, whereas production in Toluca will stop for a month.

      The Compass is one of only two vehicles that Stellantis offers in the U.S. for under $30,000, with the other being the Dodge Hornet, which shares its platform and is also assembled overseas, alongside the Alfa Romeo Tonale in Turin, Italy.

      Windsor was also expected to manufacture the next-generation Compass, but that project is now on hold indefinitely as Stellantis reevaluates its electrification strategy post-Tavares.

      In an email reportedly sent on Thursday morning, Stellantis US COO Antonio Filosa informed employees that there would be impacts at “several of our U.S. powertrain and stamping facilities that support those operations,” including layoffs. The affected facilities will include the Indiana Transmission Plant, Kokomo Casting Plant, and Kokomo Transmission Plant, as well as the Warren and Sterling Heights stamping facilities.

      President Trump stated that the 25% tariffs are part of a strategy that will lead to “tremendous growth in the auto industry.” Analysts estimate that these tariffs could raise vehicle prices by anywhere from $3,000 to over $10,000.

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