Stellantis has initiated the layoff of 1,100 jobs at its Warren plant in Michigan. Moreover, the automotive group has announced that further reductions in employed personnel might be coming due to declining sales, exacerbating the difficulties the company is already facing.
The layoffs at the Stellantis pickup truck production plant in Warren are inevitably linked to the cessation of Ram 1500 Classic production, and were foreshadowed in August. Some senior employees might be transferred to other Stellantis locations, but everything is still under discussion.
Stellantis: more layoffs coming in the United States
In an official statement, a spokesperson confirmed that the company will implement “permanent layoffs” for other employees across its numerous facilities. The extent of Stellantis’ planned cuts is not yet clear.
Jessica Caldwell, head of insights at Edmunds, emphasized that the company has made mistakes in the U.S. market, particularly with the Jeep brand. “Jeep was the rugged, practical American brand, but now the vehicles have become expensive and flashy, disconnecting from current consumer preferences,” Caldwell explained.
Many Stellantis brands are facing a surplus of inventory in the United States, which is forcing Stellantis to offer hefty discounts to clear them out. In June, Jeep and Ram had more than double the industry average in terms of inventory, but other brands like Alfa Romeo, Chrysler, and Dodge are in the same situation.
Models such as the Dodge Hornet and Jeep Grand Wagoneer are among the slowest-selling vehicles in the U.S. market, with inventory exceeding 400 days on average. To make matters worse, Stellantis’ profits plummeted by 48% in the first six months of the year. At the same time, the company is embroiled in a heated conflict with the United Auto Workers (UAW) union, having recently filed eight lawsuits against the union and 23 of its local chapters.