‘This is definitely concerning': Stellantis reports Trump tariff hit as Canadian plant sits empty

CTV News

3 days ago

Auto giant Stellantis says its estimates show a US$2.68 billion net loss in the first half of the year due to U.S. tariffs and some hefty charges.
Auto giant Stellantis says its estimates show a US$2.68 billion net loss in the first half of the year due to U.S. tariffs and some hefty charges.
Stellantis is having a rough year, and Canadian auto workers remain anxious about what lies ahead.
The maker of Jeep, Ram and Fiat announced Monday it's staring down a massive $3.7 billion loss for the first half of 2025, with U.S. President Donald Trump's auto tariffs delivering a $480 million blow that has forced the company to slash production and shipments.
For 3,000 workers at Stellantis' idled Brampton assembly plant, the news is worrying.
'This is definitely concerning for our members, with this news today that the company's lost a lot of money in this quarter,' said Vito Beato, president of Unifor Local 1285.
The Brampton facility hasn't been producing cars since late 2023, when a $1.3 billion retooling of the plant began to build the next-generation Jeep Compass. But in February, citing the 'dynamic environment' in the auto sector, Stellantis suddenly hit pause on the retool.
Workers were supposed to return by year's end. That now seems unlikely.
'It's looking like they're going to be off well into 2026, if not longer,' said David Kennedy with Automotive News Canada. 'You can understand why the company has kind of pressed pause on it, because they just don't know what's going to happen.'
Trump's tariffs are making it more expensive for Stellantis to build vehicles in Canada and ship them to the U.S. Beato started at the Brampton plant in 1992 and says its future being left in limbo is taking a toll on his union members.
'Emotionally, it's very hard, because there's a lot of uncertainty, because the company still hasn't made a decision,' he said.
Stellantis had said the retooling pause does not change its investment plans for the plant, but it has not said when work to continue retooling the plant will resume.
The tariff impact could get worse. Stellantis Chief Financial Officer Doug Ostermann warned the full-year hit could reach as much as $2.4 billion as the effects compound in the second half of 2025. Some also warn that it could lead to higher prices. When automakers get squeezed by tariffs, they can pass those costs to consumers through price hikes and fewer incentives.
Stellantis was already struggling with slumping sales. There's been a massive 25 per cent drop in shipments for North America and the company brought in a new CEO just months ago after the previous one resigned under pressure. The threat of tariffs and the dismantling of electric vehicle (EV) regulations in America have created chaos for the auto sector.
Kennedy says Stellantis may be waiting a better sense of how the tariff situation is going to play out before making any further announcements at the Brampton plant.
'I can't imagine something will happen before Aug. 1, and if the uncertainty on tariffs continues, I think we should anticipate not knowing what's going to happen in Brampton for the next few months,' says Kennedy.
Stellantis' Windsor Assembly Plant was shut down two weeks earlier this year as the company assessed the impact of tariffs.
'A world with tariffs is unacceptable for us,' Beato said. 'A world with tariffs puts our plant in a vulnerable position, even more so than it is now, and not only for our plant, but all of southern Ontario and the whole auto industry.'