For two weeks will close the Stellantis the factory Chrysler in Canada, and according to its announcement, is considering the possibility of “breaks” in its production in Mexico factories, mainly due to the imposition of high duties on imported vehicles.
The fifth automobile industry worldwide will close its factory in Windsor, Ontario, where 4,000 employees are employed for two weeks, starting on April 7, a spokesman said, confirming the announcement by the Uniform Union. The Stellantis plant, which has almost a century of life, manufactures the minivan Chrysler Pacifixa and the Dodge Charger electric cars, which are exported to the US just on the opposite bank of the Detroit River.
Windsor’s closure is mainly linked to duties announced by US President Donald Trump in imported cars, according to the union.
The Stellantis Group said that “it is continuing to assess the impact on imported cars and will continue to discuss with the US government its policy changes”.
“The immediate measures we need to take include temporary cessation of interruption in some assembly plants in Canada and Mexico, which will have an impact on many of the US engine production units and metal configuration that support these businesses,” the company added.
Stelantis, along with the other two US giants, Ford and General Motors, are calling for a reduction in duties for cars imported into the US from Mexico and Canada, where the three companies have many factories. Manufacturers are afraid that duties will push them to produce more vehicles in the US and significantly increase their prices by losing customers.
Visiting Windsor in late March, Canada Prime Minister Mark Carney said he wants to create an “exclusively Canadian” vehicle construction network to face Trump’s threat to “put an end” to the Canadian automotive industry.
“The point is not to wait until the Americans become more reasonable, but to act now,” he said. “What we need to do is build more vehicles here in Canada,” he added, noting that the accessories can cross the Canada-US border up to six times until a car is assembled, which makes the sector vulnerable to a commercial crisis.
Trump accuses Canada of “stolen” the US car industry and has stated that companies who want to avoid duties must build their vehicles in the US.
Source: RES – EIA