Stellantis is reducing production in the United States, leading to thousands of temporary layoffs for workers at two major plants in the country. This decision was also made due to declining sales in the United States which, despite a slightly growing second quarter of the year, shows a 21% drop in sales year-over-year. At the pickup assembly plant in Warren, near Detroit, Stellantis will reduce production from two to one daily shift throughout July, resulting in the temporary layoff of about 1,600 workers, about half of the plant’s workforce.
Stellantis reduces production at two of its factories and temporarily cuts thousands of jobs in the United States
The reason is related to sales of the Wagoneer and Grand Wagoneer, said Eric Graham, who leads United Auto Workers Local 140, which represents the plant’s workers. The plant also produces the Ram 1500 Classic pickup. “Stellantis is modifying the operating model at its Warren Truck Assembly Plant to align production with sales,” said Stellantis spokeswoman Jodi Tinson. “The plant will operate on a single shift for the month of July. The company will continue to monitor demand and take necessary measures to balance inventories.”
Meanwhile, it was announced that Gladiator production at the Toledo Assembly Complex in Ohio will remain completely suspended for a six-week period between July and August, according to a letter sent Monday by the UAW to its members. “Toledo South will be down starting the week of July 8 and resume production the week of August 19 to align production with sales, retool the plant for a new model and observe a summer vacation week,” said the Stellantis spokesperson. “Employees will be reassigned to support production at the Toledo North plant during this period, except during the summer vacation week of August 5.”
Jeep Gladiator production levels had already decreased in recent weeks, with workers sometimes contributing to Wrangler construction, due to slowing demand for the pickup, union representatives and workers said.
Employees assigned to the plant’s Wrangler production will also undergo a two-week shutdown starting next Monday, according to the UAW letter. The Toledo plant employs about 5,000 workers in total. Summer plant shutdowns, lasting one or two weeks, are not unusual as automakers seek to perform maintenance and prepare the production line for new models. However, long-term plans to reduce production of Gladiator, Wagoneer and Grand Wagoneer are linked to slower-than-expected model sales and large inventories that have accumulated on dealership lots in recent months. For example, the Dodge Hornet is the slowest-selling car in the United States, with a 550-day inventory.