The Stellantis automotive group, has just announced a new drastic reduction regarding production at one of its important production centers, namely the Toledo plant, within which until now vehicles such as the Jeep Gladiator have been assembled. It seems that the decision came in the wake of the major drop in sales suffered by the Gladiator model. Precisely because of this, 1,100 workers could lose their jobs within a short time. The decision, includes a shift from two shifts to only one, something that heralds what is sure to be a very heated debate about what are currently difficult challenges for the entire industry at a time when we are focusing on the transition to electric, but also on worker protection.
More cuts coming for Stellantis
Stellantis has announced its decision to reduce the number of shifts at its Toledo plant, where Jeep Gladiator pickup trucks are produced, resulting in about 1,100 permanent layoffs expected by early next year. The decision to go from two to one shift was no surprise, given the decline in Gladiator sales this year and plans to reduce inventories of pickup trucks and other models before the end of the year.
Stellantis indicated that layoffs could begin Jan. 5 and notified local and state authorities of the WARN notice. Production of the Gladiator has already suffered disruptions and reductions throughout the year, as has that of the Jeep Wrangler, which is assembled at the same plant.
Jodi Tinson’s statements
The spokesperson for this situation for Stellantis is Jodi Tinson, who confirmed that while Stellantis faces a year of transition, the focus has been on realigning its U.S. operations to ensure a strong start to 2025. Tinson went on to say that this factor includes taking difficult but necessary steps to reduce high inventory levels by managing production to meet sales.
The spokesperson’s statement also added that the company planned to eventually return to previous production levels after regaining its top ranking. Leaders of the United Auto Workers at the Jeep plant notified members in a letter, within which they mentioned a forecast of 1,139 people who would be affected by the layoff. Currently, and until this major cut occurs, Stellantis has every intention of rotating and then alternating shifts. This means that day shift workers who will work in the morning may also be called upon on some days to work during the afternoon. This, as anticipated, is caused by fewer pickup orders.
Stellantis promises benefits for those who will lose their jobs
Stellantis said that laid-off employees, according to its national agreement with the UAW, will receive an additional year of unemployment benefits on top of state unemployment, amounting to 74 percent of their pay. This will be followed by one year of transitional assistance, with health coverage extended for two years.
Regarding the Wrangler model being produced at the facility, UAW officials said they expect two shifts to be in continuous operation soon. That side of the plant had been temporarily reduced to one shift in recent weeks. Gladiator sales in the United States are down 21 percent year-on-year in the third quarter, with 32,670 units sold, prompting Jeep to recently begin offering 10 percent discounts and other incentives. Sales of the pickup have been steadily declining in recent years, raising concerns among local union leaders.