A view of the Jeep plant where United Auto Workers members picket on September 18, 2023 in Toledo, Ohio.
Sara Rice | fake images
DETROIT – Automobile manufacturer starry announced plans Wednesday to cut a manufacturing shift and indefinitely lay off about 1,100 workers at a Jeep plant in Ohio.
The company, which has been struggling with high inventory levels and lower profits this year, said the decision at its Toledo South assembly plant to reduce production to one shift will better align production with demand for the Jeep Gladiator pickup truck. the only product of the factory.
“As Stellantis navigates a year of transition, the focus is on realigning its US operations to ensure a strong start to 2025, including taking difficult but necessary steps to reduce high inventory levels by managing production to meet sales,” Stellantis said in an email. statement.
The layoffs will take effect starting January 5, according to Stellantis. The automaker announced the layoffs along with required notices to government agencies under the Worker Adjustment and Retraining Notification Act.
The United Auto Workers union, which represents Stellantis employees at the plant, did not immediately respond for comment.
Under the company’s 2023 contract with the UAW, Stellantis said it will provide laid-off employees with one year of supplemental unemployment benefits in combination with any eligible state unemployment benefits, equal to 74% of their salary, followed by a year of transition assistance. Health care coverage will also continue for two years.
Stellantis, including its Jeep brand, is trying to execute a turnaround plan after a year-long decline in U.S. sales. Jeep, a coveted brand in the auto industry, has been on a U.S. sales rut that has included five years of annual sales declines, with 2024 on track to potentially become the sixth.
The plan includes reducing prices across its range, including high-volume models like the Jeep Compass and Grand Cherokee SUVs; implement special offers such as incentives or 0% financing; and increase marketing and advertising spending.
Jeep sales in the United States have plummeted 34% from an all-time high of more than 973,000 SUVs sold in 2018 to fewer than 643,000 units last year. While most car brands increased their sales last year, Jeep declined by about 6%.
