Stellantis announced that it will lay off 900 workers across the US. This latest decision comes just as the impacts of President Trump’s new auto tariffs prescription begin to manifest. The company runs three factories in Kokomo, Indiana, that have recently faced temporary production shutdowns as a result of these tariffs. President Donald Trump’s decision to impose a 25% tariff on imported vehicles received strong public support from the United Auto Workers (UAW) union. Now that decision is hitting workers in Kokomo particularly hard.
The Windsor layoffs were a result of a shutdown in production at Stellantis’ Canadian facility in Windsor, Ontario that produces Chrysler minivans. Rewarding sulking with jobs As a direct consequence, about 330 UAW members in Kokomo have already lost their jobs. Stellantis is facing pressure from tariffs on EVs produced in Canada and Mexico. This unpredictability surrounding the company’s future plans has fostered an atmosphere of intimidation toward the company’s employees.
Layoff Details and Production Struggles
Stellantis has recently confirmed that the layoffs will continue to grow as they continue to deal with the disastrous financial effects of these tariffs. “We do not undertake these steps lightly,” said Antonio Filosa, chief operating officer for the Americas at Stellantis. They’re needed, given today’s market realities. The company has cautioned that, should it have to swallow the tariff cost, vehicle manufacturing would no longer be profitable.
For their part, the local UAW union in Kokomo has played hardball. For one, they’ve posted a sign in their parking lot threatening to tow any non-union vehicles, especially those made in Mexico. This dramatic move is true to the growing antagonism and polarization created by the present destructive and incendiary state of trade policy. Production has ceased in Canada and Mexico. Now, auto workers in Kokomo are understandably concerned about job security and the future of their plants.
UAW member Denny Butler said he was tired of Stellantis playing games. It’s just more of the same from Stellantis, sadly. He countered that the auto maker has had “all the time in the world” to get ready for the tariff adjustments. Rather, they are opting to use employees as a form of “collateral damage.”
Impact of US-Mexico-Canada Agreement
These advances occur amid implementation of the US-Mexico-Canada Agreement (USMCA). Negotiated during Trump’s first term, this agreement strengthens American manufacturing and curbs the spread of tariffs. Lana Payne, president of Unifor, accused automakers of restoring jobs to the U.S. at an overly slow pace. Trump is soon to find out how integrated the North American production platform truly is. Sadly, it will be autoworkers who pay the price for that rude awakening,” she continued.
Stellantis’s plants in Toluca, Mexico, which build the Jeep Compass small SUV and soon, the electric Jeep Wagoneer S. Eleven of those planned U.S. plants are just for these models, which begs the question of what that means for Kokomo’s job security. Moving production back to American facilities would take years of planning and investment in domestic supply chains.
Despite these challenges, some workers remain hopeful. In fact, we learned that Kokomo worker Derek Gungle often makes a quick jaunt into Canada for lunch. In his address, he points to the close interconnection between U.S. and Canadian workers. That camaraderie is somewhat riled by the fact that tariffs make employees in each country feel like rivals.
Future Outlook for Workers
While Stellantis continues to find its footing after a stormy IPO, the heart and breath of Kokomo’s labor force are haunted by uncertainty. The confusion about what the company will do in response to tariffs adds to the worry felt by all those who rely on these jobs. Perhaps most concerning is the prospect that layoffs might reach beyond the first 900 cuts already reported.
Antonio Filosa’s message to stakeholders was clear: Stellantis is still committed to a longterm relationship with government leaders, unions, suppliers and dealers in North America. We know that the overall climate adds to your uncertainty right now,” he said. So just know, even if it seems like we’re ignoring you, we are listening and giving due diligence to all our key stakeholders. Collectively, we’re navigating them and figuring out how to adjust.
Workers such as Denny Butler, above, are still unsure that Stellantis cares about its workers. He added that he does not expect any more companies to announce returning car plants to the U.S. in the coming months. He is afraid what turns out won’t be as good as they wish.
