This week, the Stellantis Toledo plant, where the Jeep Gladiator pickup and Wrangler SUV are produced, will undergo a production reduction. This is the latest in a series of suspensions or slowdowns imposed by the automotive group, due to excess vehicle inventory in the United States and other issues.
Stellantis Toledo: production reduced starting this week
Jeep Gladiator production has been suspended at the Stellantis Toledo Assembly Complex since Monday, with workers on temporary layoff, expected to return on September 23. An automated message and instruction document were sent to employees, but the total number of affected workers is not yet clear.
“Stellantis continues to take necessary actions to improve operations in the U.S. market in support of its dealer network; this includes making production adjustments where necessary to improve its market competitiveness,” stated a company statement sent by spokesperson Ann Marie Fortunate. “The company will continue to monitor the situation to assess whether further production modifications are needed.”
Stellantis Toledo has already halted production of Wrangler and Gladiator models during the summer, due to declining sales and excess inventory. In the second quarter, Gladiator sales decreased by 24% compared to the previous year, with 10,489 units sold, while Wrangler sales fell by 17%, with 38,896 units.
Other Stellantis plants in the United States have also temporarily reduced shifts or completely stopped production in recent months, including the Warren Truck Assembly Plant, the Detroit Assembly Complex, and the Trenton Engine Complex. These production cuts are part of a context of growing discontent among dealers, who have expressed concerns about high prices, a suboptimal product range, quality issues, and insufficient marketing.
In a recent interview, Jeep CEO Antonio Filosa acknowledged the brief production pauses at the beginning of this month in plants building the Wrangler and Grand Cherokee. But he said the big future goal will be finding ways to accelerate sales. Filosa and Bob Broderdorf are planning an October tour of dealerships across the country as they work to launch a turnaround.
“We want to improve dealer inventory on the sales side,” he said. “Some production adjustments have already been made, and probably others will be made in the future, but nothing major. The point is to accelerate retail sales. That’s why we’re doing the dealer road show. That’s why we plan to intensify touchpoints with dealers.”