Stellantis NV continued to slash vehicle production and cut jobs in the United States this week, including at the automaker’s Detroit Assembly Complex where the Jeep Grand Cherokee and Dodge Durango SUVs are built.
Vehicle production at both the Mack and Jefferson sides of the east-side complex is paused this week, with workers temporarily laid off. Notices sent to workers said certain positions were still expected to report. Mack builds the Grand Cherokee, while Jefferson makes both the Grand Cherokee and Durango.
“Stellantis continues to take the necessary actions to align production with sales,” said a company statement sent by spokesperson Ann Marie Fortunate. “This includes making production adjustments at both Detroit Assembly Complex plants. The Company will continue to monitor the situation to assess whether further action is required.”
In addition, 51 workers at each plant were indefinitely laid off in recent days. That’s the latest of several rounds of job cuts, both at the Detroit facilities and several other Stellantis plants in recent weeks.
Other major Stellantis factories, including the Toledo Assembly Complex, where the Jeep Wrangler SUV and Gladiator pickup are built, also scaled back production this week. Toledo has faced production cuts several times this year, recently raising concerns from local union leaders.
Production at the Warren Truck Assembly Plant — where the Jeep Wagoneer and Grand Wagoneer are built and where about 1,100 workers were recently let go — was also halted this week, as it has frequently been this year due to low orders of the large SUVs. The Warren Stamping Plant, which feeds key Stellantis assembly plants, was also dealing with temporary layoffs and only minimal production this week, local union officials confirmed.
Stellantis is trying to tame large inventories of many models that have helped fuel dealer complaints and investor concerns. The automaker’s U.S. sales were down 20% in the third quarter year-over-year. The automaker recently said it is significantly cutting back on shipments to address the inventory issues, and that it expects to have no more than 330,000 vehicles in U.S. dealer inventory by the end of 2024, instead of the previously planned first quarter of 2025.
A Stellantis statement said the company is in “full implementation mode” to adapt to a volatile market and offer customers vehicles they can afford.
“As such, we are continuing to take the difficult, but necessary actions to improve operational efficiency across our facilities,” the statement said. “While that effort continues, the Company will be implementing indefinite layoffs of represented employees across its footprint.”
Under the 2023 UAW-Stellantis contract, those laid off receive a year of supplemental unemployment benefits that equals 74% of their pay, followed by a year of “transition assistance.” Health care coverage also extends for two years.
