Across Metro Detroit, hundreds of General Motors and Stellantis auto workers have been temporarily laid off this year.
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The layoff announcements came soon after the Trump administration slapped 25% tariffs on all automobile imports with a partial exemption for vehicles manufactured under the United States-Mexico-Canada Agreement.
President Trump has said this rate could go up for Canada. The 25% tariffs are set to also apply to auto parts starting May 3.
Some of the layoffs so far this year have been unrelated to tariffs, but tariffs could lead to long-term issues for the industry, resulting in increased costs for imported parts, higher prices for consumers and the potential for reduced demand, impacting overall industry stability.
While Trump says auto tariffs will shift production of cars and car parts back to the U.S., experts warn this could take years (if it’s even possible at all).
“The automakers are in a serious predicament,” Patrick Anderson, president of Michigan-based think tank Anderson Economic Group, CNN. “They’re going to have to make tough decisions about what production to continue, what not to make … We expect implementation of these tariffs to affect jobs across the United States.”
The scope of the layoffs
Last month, GM furloughed about 200 workers at its Factory ZERO plant, which builds electric vehicles, saying in a statement that the factory “will adjust production to align with market dynamics.” The company claimed the layoffs are not related to tariffs.
Factory ZERO employs more than 4,500 employees; those who’ve been furloughed don’t yet have a return-to-work date.
in April, Stellantis also temporarily laid off 900 American workers — via a company-wide email — for two weeks. This affected employees at the Warren Stamping and Sterling Stamping plants in Michigan, among other plants in the country, according to CNN.
In this case, the automaker recognized the impact of tariffs on the industry. “With the new automotive sector tariffs now in effect, it will take our collective resilience and discipline to push through this challenging time,” stated Antonio Filosa in the corporate email.
According to The Detroit News, the company said more than half of the employees from Sterling Stamping and Indiana plants who were put on temporary layoff when production was paused the week of April 7 would return to work on April 22.
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Production at the Warren Truck Assembly Plant will be down through early May partly due to “an internal shortage of engines.” This is reportedly affecting 1,000 workers.
Stellantis’s Mack and Jefferson North facilities in east Detroit have also faced downtimes recently due to the transition to a refreshed 2026 Grand Cherokee.
Tips for workers facing temporary layoffs
If you’re a worker experiencing a temporary layoff — and not sure if and when you’ll be back to work — there are steps you can take to protect your financial future.
If you’re part of a union, contact your union representative so you understand your rights and how temporary layoffs work, like if you still get benefits. You may be eligible for unemployment insurance benefits. You may also be eligible for a furlough grant, which can help cover your bills.
Each state has its own unemployment insurance program; to qualify, you’ll need to meet certain requirements (such as time worked consistently). Typically you’ll be compensated for up to 26 weeks, depending on the state.
To budget during an income gap, you may want to prioritize essentials, delay large purchases and possibly even negotiate some of your bills. It helps to have an emergency fund, which should ideally cover three to six months of expenses. If you don’t have one, make it a priority to build one once you’re back to work. You may also be able to borrow from your 401(k).
Consider taking on a side gig in the meantime to bring in some extra cash and possibly putting some aside in an emergency fund. You could also use the time to take online courses, pursue certifications and polish off your resume.
In the long-term, it may be worth looking at reskilling opportunities to better prepare for an uncertain future.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
