MJP –
Jeep manufacturer Stellantis announced Wednesday that it would cut an entire shift at a plant in Toledo, Ohio, eliminating about 1,100 jobs.
Stellantis said its decision to reduce production at the Toledo South Assembly plant to one shift was made to better align the factory with the steady decline in demand for Jeep vehicles over the past few years.
“As Stellantis navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025, which includes taking the difficult but necessary action to reduce high inventory levels by managing production to meet sales,” the automaker said in a statement.
The layoffs are set to take effect on Jan.5.
Under the terms of the contract United Auto Workers signed with Stellantis last year, cut workers will receive one year of supplemental benefits, equalling 74% of their pay, one year of employment transition assistance and two additional years of health coverage.
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Stellantis’ cuts at the Toledo facility come as the company tries to dramatically increase sales and reduce inventory on its Jeep models. In the past year, the company has rolled out discounts on its Jeep Grand Cherokee and Compass models and offered 0% financing.
Still, the move will likely worsen relations between Stellantis and UAW.
Earlier this year, UAW launched a legal and labor battle against the company after Stellantis implied that it would not be re-opening a Belvidere, Illinois on the timeframe promised in the UAW contract signed in 2023.
Despite negotiations, UAW leaders have threatened to strike, and Stellantis has launched several lawsuits against the union for allegedly violating last year’s contract.
