DETROIT — Automaker Stellantis introduced plans Wednesday to chop a producing shift and indefinitely lay off roughly 1,100 employees at a Jeep plant in Ohio.
The firm, which has been battling excessive stock ranges and decrease earnings this 12 months, stated the choice at its Toledo South Assembly Plant to chop manufacturing to 1 shift will higher align output with demand of the Jeep Gladiator pickup — the manufacturing unit’s sole product.
“As Stellantis navigates a transitional 12 months, the main target is on realigning its U.S. operations to make sure a robust begin to 2025, which incorporates taking the troublesome however essential motion to scale back excessive stock ranges by managing manufacturing to fulfill gross sales,” Stellantis stated in an emailed assertion.
The layoffs will probably be efficient as early as Jan. 5, in line with Stellantis. The automaker introduced the layoffs along with required notices to authorities companies underneath the Worker Adjustment and Retraining Notification Act.
The United Auto Workers union, which represents Stellantis staff on the plant, didn’t instantly reply for remark.
In accordance with the corporate’s 2023 contract with the UAW, Stellantis stated it should present laid off staff with one 12 months of supplemental unemployment advantages together with any eligible state unemployment advantages, equalling 74% of their pay, adopted by one 12 months of transition help. Health-care protection additionally will proceed for 2 years.
Stellantis, together with its Jeep model, is trying to execute a turnaround plan following a yearslong decline in U.S. gross sales. Jeep, a coveted model within the automotive business, has been in a U.S. gross sales rut that has included 5 years of annual gross sales declines, with 2024 on tempo to probably grow to be the sixth.
The plan has included reducing pricing throughout its lineup, together with on high-volume fashions such because the Jeep Compass and Grand Cherokee SUVs; rolling out particular provides resembling incentives or 0% financing; and growing spending on advertising and promoting.
Jeep’s U.S. gross sales have plummeted 34% from an all-time excessive of greater than 973,000 SUVs bought in 2018 to lower than 643,000 models final 12 months. While most auto manufacturers elevated gross sales final 12 months, Jeep was off by about 6%.