Stellantis laying off 1,100 workers at its Toledo Jeep plant

Stellantis laying off 1,100 workers at Toledo plant

(CBS DETROIT) - Stellantis will indefinitely lay off 1,100 union-backed workers at its Toledo South Assembly Plant, the automaker announced. 

Stellantis, which owns brands like Chrysler, Dodge, Fiat, Jeep and Ram, says the job cuts are effective Jan. 5, 2025. 

The company said it will move from a two-shift to a one-shift operating pattern at its South plant, where it produces its Jeep Gladiator. The assembly complex's North plant, which produces the Jeep Wrangler and Jeep Wrangler 4xe, is not impacted by the layoffs. 

"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 company said in a statement. "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 in accordance with its 2023 contract with the United Auto Workers, it will provide impacted employees with one year of supplemental unemployment benefits in combination with state unemployment benefits, which equals 74% of their pay, and a year of transition assistance. The company is also providing health-care coverage for two years. 

Last week, Stellantis reported a 27% plunge in third-quarter revenue, as its shipments dropped by 20% to 1.2 million vehicles during the quarter compared to 1.5 million a year earlier. 

The automaker is facing threats of a strike by the UAW and has been pressured by Italian lawmakers on production cuts to brands like Alfa Romeo, Fiat and Maserati. 

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