About 1,100 workers at Toledo, Ohio, Jeep plant face layoffs as company tries to reduce inventory

DETROIT -- About 1,100 workers astatine nan Stellantis Jeep mill successful Toledo, Ohio, are facing layoffs early adjacent twelvemonth arsenic nan institution takes further steps to trim precocious inventory astatine dealerships.

Stellantis said Thursday that nan Toledo South plant, which makes nan Jeep Gladiator midsize pickup truck, will spell from 2 regular shifts to 1 arsenic early arsenic Jan. 5.

Sales of nan Gladiator, nan pickup motortruck type of nan Jeep Wrangler SUV, are down astir 21% truthful acold this twelvemonth to 36,519, according to Motorintelligence.com.

“These are difficult actions to take, but they are basal to alteration nan institution to regain its competitory separator and yet return accumulation to anterior levels,” Stellantis said.

A connection was near Thursday seeking remark from nan United Auto Workers union, which represents labor astatine nan Toledo plant.

Under nan national statement pinch Stellantis, laid-off workers will get supplemental salary for 1 twelvemonth that, erstwhile mixed pinch authorities unemployment benefits, will adjacent 74% of regular pay. They’ll besides get wellness security sum for 2 years, Stellantis said.

The move is nan latest action by nan institution arsenic it struggles pinch precocious inventory connected trader tons successful nan U.S. Stellantis' wide income person been down astir of nan twelvemonth successful nan U.S., and discounts to antagonistic precocious sticker prices that came aft a mediocre 2nd 4th didn’t work.

In August, nan institution warned that it could laic off arsenic galore arsenic 2,450 of nan 3,700 national workers astatine nan pickup motortruck works successful Warren, Michigan, northbound of Detroit. It said astatine nan clip nan number of occupation cuts will beryllium little because of early status offers.

In nan U.S., Stellantis’ trader inventory ballooned to conscionable complete 430,000 vehicles successful June. Third-quarter sales fell 20%, and they’re down complete 17% for nan first 9 months. The remainder of nan car manufacture saw income summation 1% from January done September.

CEO Carlos Tavares said successful October that inventory dropped by 52,000 successful caller months, and nan institution is trying to get beneath 350,000 by Christmas for a “fresh start” going into nan caller year.

Last period nan world's fourth-largest automaker, which was created by nan 2021 merger of PSA Peugeot and Fiat Chrysler Automobiles, reported a 27% driblet successful nett revenues for nan 3rd quarter.

Tavares has been nether occurrence from U.S. dealers and the United Auto Workers union this year, caught disconnected defender by excessively galore high-priced vehicles connected trader lots. Tavares has been trying to trim costs by delaying mill openings, laying off national workers and offering buyouts to salaried employees.

The national is threatening to onslaught against nan institution complete delays successful reopening an assembly works successful Belvidere, Illinois, which Stellantis blames connected a slowing market.