Will GA car plants be affected by the automotive industry layoffs?
Automaker Stellantis announced in a letter to its employees on Thursday that they are temporarily laying off 900 U.S. workers and halting operations at plants in other countries in response to new 25% tariffs on imported vehicles enacted by President Donald Trump.
The measures will temporarily lay off employees in Michigan and Indiana and pause production in plants in Canada and Mexico. The announcement preceded an 8% downturn of their shares, including shares in Ram Trucks and Jeeps, Reuters reported.
How does this affect Georgia?
Stellantis participates in a strategic partnership with Archer Aviation, an aerospace manufacturer in Covington. This facility produces electric vertical takeoff/landing aircraft (eVTOL) specifically designed for urban air mobility and has only recently begun production.
It’s unclear how many jobs the plant provides now, but the Georgia Department of Labor reported in 2022 that the company committed to creating 1000 jobs and pledged $118 million over 10 years for eVTOL technology.
No Georgia-based Stellantis employees or suppliers will be impacted as yet; cuts currently only affect powertrain and stamping facilities.
Reuters quoted the Stellantis Chief Operating Officer, Antonio Filosa, saying the company is “continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions.”
Reactions to Stellantis’ cuts
The layoffs and production pauses are a direct response to tariffs targeting foreign-made vehicles and auto parts, which President Trump announced on what he dubbed “Liberation Day.”
Stellantis cited the need to “quickly adapt” to policy changes and protect its competitive edge, yet critics are calling it premature. The United Auto Workers (UAW) criticized the car manufacturer in the U.S. for “unnecessary” job cuts, while Canadian union Unifor warned tariffs would disrupt North America’s interconnected auto industry.
The recent tariffs have sparked a national debate about their efficacy, with one Wall Street Journal analyst calling them “draconian.” The trade war could have ripple effects that some experts worry could increase inflation, and many economists even fear it will trigger a recession, according to Newsweek.
President Trump, on the other hand, said in his announcement on Wednesday, “We are advocating for the American worker, and at long last, we are prioritizing America,” characterizing the tariffs as “proclamation of economic autonomy.”
Although Georgia’s automotive industry isn’t directly involved in the layoffs, the Federal Reserve of Boston predicts unilateral price hikes across all categories, and consumers and businesses are bracing for what’s upcoming.
We reached out to the Georgia Department of Labor and Archer Aviation, but neither have responded as of publication of this article.
Are tariffs good or bad? Email me at srose@ledger-enquirer.com or find me on Instagram.
This story was originally published April 7, 2025 at 4:06 PM with the headline "Will GA car plants be affected by the automotive industry layoffs?."
