In response to the recently imposed 25% import tax on autos, Stellantis announced temporary layoffs and a halt in production across several facilities, while Ford rolled out steep vehicle discounts and a new patriotic ad campaign to promote its U.S. manufacturing dominance.
Stellantis, known for its Ram trucks and Jeep models, is pausing operations at an assembly plant in Mexico and one in Canada, in addition to temporarily laying off approximately 900 workers in the U.S.
The U.S. plants affected are primarily involved in powertrain and stamping operations, which supply parts to the company's factories in Mexico and Canada. Notably, production at Stellantis' Windsor Assembly in Canada and Toluca Assembly in Mexico will cease for two weeks and the entire month of April, respectively. The Windsor facility manufactures popular models such as the Chrysler Pacifica and Voyager minivans, along with the Dodge Charger Daytona, while the Toluca plant produces the Jeep Compass and Jeep Wagoneer S.
"We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but have also decided to take some immediate actions,” Antonio Filosa, COO for the Americas at Stellantis, said in a letter to employees.
The imposition of the tariffs, which represent a significant jump from the base U.S. tariff rate of 2.5% for automotive imports, has compelled automakers to reevaluate their operational strategies. Vehicles imported from Canada and Mexico can have the value of U.S. parts deducted from the new 25% levy, a critical detail that might influence future company decisions.
Ford Offers Employee Pricing as Tariffs Hit
Ford’s “From America, For America” campaign highlights the company’s status as the leading U.S. employer of hourly autoworkers and top assembler of vehicles domestically.
“We’re in a very competitive position in our stock,” Rob Kaffl, Ford’s director of U.S. sales, told the Detroit Free Press. “We feel by providing this message in ‘From America, For America,’ we’re providing some security.”
To draw customers amid economic uncertainty, Ford is offering its employee pricing plan -- known as the A Plan -- to all retail customers on most new 2024 and 2025 Ford and Lincoln models through June 2.
Under this discount program, prices drop significantly. For instance, a Ford F-150 XLT hybrid with a $65,000 MSRP would cost about $55,000 with the A Plan, while an Escape ST priced at $36,300 could sell for roughly $33,000, according to a dealer source.
In addition, Ford is extending its “Ford Power Promise” through June 30. The initiative offers customers a free home charger and complimentary installation with the purchase or lease of an electric vehicle, including the Mustang Mach-E, F-150 Lightning and E-Transit Cargo Van.
The promotions come as Ford seeks to maintain market share and momentum in EV sales, which rose 25.5% year-over-year in the first quarter to 73,623 units. Electrified vehicles now represent 15% of Ford’s total U.S. sales.
By contrast, overall first-quarter U.S. sales dipped 1.3% from the prior year to 501,291 vehicles. However, Ford sees a strategic advantage in its U.S.-based production. The company imports just 21% of the vehicles it sells in the U.S., compared to 46% for General Motors.
Still, the long-term impact of tariffs remains unclear. In a March 27 memo, Ford CEO Jim Farley acknowledged potential challenges, writing, “The situation is dynamic and the impacts of the tariffs are likely to be significant across our industry.”
