Stellantis's manufacturing plant in Windsor, Ont., remains idle and is at the heart of a dispute between the carmaker, Unifor and the federal government.Nicole Osborne/The Globe and Mail
Stellantis NV STLA-N has extended the shutdown of its assembly plant in Windsor, Ont., for the sixth week since mid-September, citing sales and tariffs.
The plant, which employs about 6,000 unionized workers and makes Chrysler minivans and Dodge Charger muscle cars, will be closed for production next week, said LouAnn Gosselin, a spokeswoman for Stellantis.
“Stellantis continues to evaluate and adjust its manufacturing operations in response to evolving market conditions, including consumer demand and the impact of tariffs,” Ms. Gosselin said.
The layoffs underline the impact of the trade war launched by U.S. President Donald Trump in 2025. He imposed 25-per-cent tariffs on non-U.S. content on Canadian-made cars, disregarding the decades-old free trade agreement between the two countries.
He has also applied tariffs on cars and goods from other countries, and has said Canada’s auto-tariff rate will rise to 50 per cent and include auto parts on Jan. 1. Mr. Trump last year threatened 25-per-cent tariffs on Canadian auto parts, but reversed course under pressure from the industry, which warned such levies would quickly halt assembly plants across North America.
Trade talks between Ottawa and Washington have begun, as Canada seeks to reduce the economic damage of the tariffs.
Flavio Volpe, head of Canada’s Automotive Parts Manufacturers’ Association, called Mr. Trump’s latest threat to tariff auto parts hollow.
“We all know that’s going to shut down the industry, including him,” Mr. Volpe said. “That’s why he backed off last year.”
Still, the tariffs have caused automotive layoffs in Ontario and reduced car shipments between the two countries.
Since the tariffs were announced in early 2025, General Motors idled its electric van plant in Ingersoll, Ont., laying off more than 1,000 workers, and eliminated one of three shifts at its Oshawa pickup-truck plant.
Stellantis, meanwhile, moved planned production of the Jeep Compass to Illinois from Brampton, a plant that once employed about 3,000 people.
The factory northwest of Toronto remains idle and is at the heart of a dispute involving the company, the Unifor union and the federal government.
Stellantis says it has a preliminary agreement to sell the plant to Roshel, a maker of armoured vehicles, ending 30 years of carmaking at the site.
“Stellantis believes that Roshel represents a strong path to restoring sustainable operations at Brampton Assembly, preserving the site’s strategic role in Canada’s advanced manufacturing sector and helping to avoid a prolonged period of inactivity,” Stellantis said.
Unifor walked away from collective bargaining with Stellantis in September over the planned sale, which it opposes. Lana Payne, Unifor’s national president, on Wednesday called for an “urgent” meeting with Stellantis and officials from the Ontario and federal governments over the plant’s future. “The economic and job security implications of a closure and sale for Unifor members, and Canada’s auto industry, are severe,” Ms. Payne said in an open letter to federal Industry Minister Mélanie Joly and Vic Fedeli, Ontario’s Minister of Economic Development.
The federal government has said idling the plant and moving production puts Stellantis in violation of the funding agreement, and it intends to get its money back. Stellantis said on Thursday talks with Ottawa are ongoing.