Current:Home > InvestAbout 1,100 workers at Toledo, Ohio, Jeep plant face layoffs as company tries to reduce inventory-DB Wealth Institute B2 Expert Reviews
About 1,100 workers at Toledo, Ohio, Jeep plant face layoffs as company tries to reduce inventory
View Date:2024-12-23 10:19:08
DETROIT (AP) — About 1,100 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! (18862)
Related
- Skiing legend Lindsey Vonn ends retirement, plans to return to competition
- Pizza Hut in Hong Kong rolls out snake-meat pizza for limited time
- Citi illegally discriminated against Armenian-Americans, feds say
- The actors strike is over. What’s next for your favorite stars, shows and Hollywood?
- Joey Logano wins Phoenix finale for 3rd NASCAR Cup championship in 1-2 finish for Team Penske
- Nation’s first openly gay governor looking to re-enter politics after nearly 20 years
- Alex Galchenyuk video: NHL player threatens officers, utters racial slurs in bodycam footage
- Spain’s Socialists to grant amnesty to Catalan separatists in exchange for support of new government
- We Can Tell You How to Get to Sesame Street—and Even More Secrets About the Beloved Show
- Top US accident investigator says close calls between planes show that aviation is under stress
Ranking
- College Football Playoff snubs: Georgia among teams with beef after second rankings
- FBI searching for Jan. 6 suspect Gregory Yetman in Middlesex County, New Jersey
- Minneapolis police lieutenant disciplined over racist email promoted to homicide unit leader
- Citi illegally discriminated against Armenian-Americans, feds say
- Sister Wives' Janelle Brown Details to Meri Why She Can't Trust Ex Kody and His Sole Wife Robyn
- Citi illegally discriminated against Armenian-Americans, feds say
- Bo Hines, who lost a close 2022 election in North Carolina, announces another Congress run
- Blake Shelton Playfully Trolls Wife Gwen Stefani for Returning to The Voice After His Exit
Recommendation
-
Former West Virginia jail officer pleads guilty to civil rights violation in fatal assault on inmate
-
Watch as barred owl hitches ride inside man's truck, stunning driver
-
Back in China 50 years after historic trip, a Philadelphia Orchestra violinist hopes to build ties
-
In-n-Out announces expansion to New Mexico by 2027: See future locations
-
The state that cleared the way for sports gambling now may ban ‘prop’ bets on college athletes
-
Shop the Best Early Black Friday Coat Deals of 2023: Save Up to 50% On Puffers, Trench Coats & More
-
Underclassmen can compete in all-star games in 2024, per reports. What that means for NFL draft
-
Nigeria’s president signs controversial bill for a presidential yacht and SUVs for lawmakers