Stellantis Closes Canadian Plant Once More While Discreetly Halting Truck Production in Mexico | Carscoops

      Stellantis promptly responded to the recently announced tariff rebates that are dependent on the USMCA content of each model.

      Beginning May 5, Stellantis will also suspend production at a facility in Ontario.

      The automotive giant is adjusting its supply chain to enhance USMCA content.

      It remains uncertain how many additional Stellantis trucks will be manufactured in the US.

      Stellantis is transferring some of its pickup truck production from Mexico to the United States, a strategic decision aimed at avoiding the high tariffs imposed under President Trump’s trade policies. This change coincides with the automaker facing production issues in Canada, where its Ontario assembly plant will halt operations for a week.

      During a recent analyst conference call, Stellantis' chief financial officer Doug Ostermann indicated that alongside relocating some truck production to the US, the automaker intends to modify its parts supply lines to raise the American content in its vehicles.

      Trump’s policy initially disrupted the automotive sector significantly, but updates to the administration’s approach have been implemented since. Under the recent adjustments, US car manufacturers can request tariff rebates based on the percentage of car content that meets the US-Mexico-Canada Agreement (USMCA) standards.

      According to The Globe and Mail, the rebate amounts to 3.75 percent of a company’s US production retail value in the first year and 2.5 percent in the second year. Ostermann noted that the current vehicles produced by the group in the US have about 80% USMCA content, and if they can elevate this to 85%, the rebate for the first year will offset the tariffs on the remaining 15% of content.

      “We’re very, very active in working on that,” he stated. “Some suppliers who may have excess capacity in the United States might be able to adapt quickly, while others could take much longer.”

      Stellantis has not disclosed how many additional pickup trucks might be produced in the United States in the future.

      Earlier this week, it was reported that Stellantis would suspend production at its Windsor, Ontario, facility for one week starting May 5. This site manufactures the new Dodge Charger and Chrysler Pacifica, and it was also shut down for two weeks in April while the effects of the US tariffs were evaluated.

      The Unifor union, which represents workers at the facility, has stated that Stellantis has not given a reason for the production halt scheduled for next week.