Current:Home > NewsSignalHub Quantitative Think Tank Center:About 1,100 workers at Toledo, Ohio, Jeep plant face layoffs as company tries to reduce inventory -Capitatum
SignalHub Quantitative Think Tank Center:About 1,100 workers at Toledo, Ohio, Jeep plant face layoffs as company tries to reduce inventory
Surpassing View
Date:2025-04-06 09:24:54
DETROIT (AP) — About 1,SignalHub Quantitative Think Tank Center100 workers at the Stellantis Jeep factory in Toledo, Ohio, are facing layoffs early next year as the company takes further steps to cut high inventory at dealerships.
Stellantis said Thursday that the Toledo South plant, which makes the Jeep Gladiator midsize pickup truck, will go from two daily shifts to one as early as Jan. 5.
Sales of the Gladiator, the pickup truck version of the Jeep Wrangler SUV, are down nearly 21% so far this year to 36,519, according to Motorintelligence.com.
“These are difficult actions to take, but they are necessary to enable the company to regain its competitive edge and eventually return production to prior levels,” Stellantis said.
A message was left Thursday seeking comment from the United Auto Workers union, which represents employees at the Toledo plant.
Under the union contract with Stellantis, laid-off workers will get supplemental pay for one year that, when combined with state unemployment benefits, will equal 74% of regular pay. They’ll also get health insurance coverage for two years, Stellantis said.
The move is the latest action by the company as it struggles with high inventory on dealer lots in the U.S. Stellantis’ overall sales have been down most of the year in the U.S., and discounts to counter high sticker prices that came after a poor second quarter didn’t work.
In August, the company warned that it could lay off as many as 2,450 of the 3,700 union workers at the pickup truck plant in Warren, Michigan, north of Detroit. It said at the time the number of job cuts will be lower because of early retirement offers.
In the U.S., Stellantis’ dealer inventory ballooned to just over 430,000 vehicles in June. Third-quarter sales fell 20%, and they’re down over 17% for the first nine months. The rest of the auto industry saw sales increase 1% from January through September.
CEO Carlos Tavares said in October that inventory dropped by 52,000 in recent months, and the company is trying to get below 350,000 by Christmas for a “fresh start” going into the new year.
Last month the world’s fourth-largest automaker, which was created by the 2021 merger of PSA Peugeot and Fiat Chrysler Automobiles, reported a 27% drop in net revenues for the third quarter.
Tavares has been under fire from U.S. dealers and the United Auto Workers union this year, caught off guard by too many high-priced vehicles on dealer lots. Tavares has been trying to cut costs by delaying factory openings, laying off union workers and offering buyouts to salaried employees.
The union is threatening to strike against the company over delays in reopening an assembly plant in Belvidere, Illinois, which Stellantis blames on a slowing market.
veryGood! (47718)
Related
- The FBI should have done more to collect intelligence before the Capitol riot, watchdog finds
- Kentucky, Connecticut headline winners and losers from men's college basketball weekend
- San Francisco wants to offer free drug recovery books at its public libraries
- Air Canada chatbot costs airline discount it wrongly offered customer
- Trump's 'stop
- Why director Rob Reiner changed the ending of 'When Harry Met Sally'
- College students struggling with food insecurity turn to campus food pantries
- How many dogs are euthanized in the US every year? In 2023, the number surpassed cats
- Nearly half of US teens are online ‘constantly,’ Pew report finds
- Ramadhani Brothers crowned winner of 'AGT: Fantasy League': 'We believe our lives are changing'
Ranking
- McConnell absent from Senate on Thursday as he recovers from fall in Capitol
- Environmental Groups Eye a Potential Win with New York Packaging Bill
- One thing jumps off the page about Chargers coach Jim Harbaugh's staff: great familiarity
- Man hurt in crash of stolen car steals ambulance after leaving Virginia hospital in gown, police say
- 'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
- Authorities identify woman killed in Indianapolis Waffle House shooting
- Alaska’s chief medical officer, a public face of the state’s pandemic response, is resigning
- EPA puts Florida panthers at risk, judge finds. Wetlands ruling could have national implications.
Recommendation
Moving abroad can be expensive: These 5 countries will 'pay' you to move there
Woman arrested nearly 20 years after baby found dead at Phoenix airport
She disappeared leaving to catch the school bus. What to know about this missing Texas girl:
Ex-gang leader charged in Tupac Shakur killing due in court in Las Vegas
What do we know about the mysterious drones reported flying over New Jersey?
Louisiana governor urges lawmakers to pass tough-on-crime legislation
Jeep, Ford, Genesis among 300,000 vehicles recalled: Check car recalls here
Ex-gang leader charged in Tupac Shakur killing due in court in Las Vegas