Stellantis who struggles with bloated inventories and falling sales said the decision to cut jobs was needed to manage production levels and better align them with sales because is working to withdraw inventory of unsold vehicles.
That’s why the company is switching from two shifts to a single-shift work system Toledo South plant, where it is produced Jeep Gladiator pickup.
Earlier in February, Stellantis laid off about 1,200 workers at its factory in Toledo North, which produces the Jeep Wrangler.
Support for dismissed employees
Members of the United Auto Workers trade union affected by the layoffs they will receive additional compensation, which combined with state unemployment benefits, it should be about 74 percent. their normal remunerationthe company announced. Their health insurance will continue for two years.
Sales decline
Third-quarter U.S. deliveries fell to their lowest levels since the company’s inception as a result of the merger of Fiat Chrysler and the French PSA group in 2021. Sales fell for five of the six brandsincluding 6 percent for the quintessential Jeep SUV brand, despite strong demand in the segment in the US. To encourage buyers, Antonio Filosa, the brand’s new general manager appointed in September 2023, is lowering list prices and adding extra equipment. So far, the effects of these actions are not visible.
