Stellantis is cutting another 1,100 jobs, the latest furloughs impacting workers at the Toledo, Ohio plant producing Jeep products such as the Wrangler and Gladiator. The news comes at a time when other manufacturers, including Nissan and Audi, are paring back at a time of weakening sales.
Weak Jeep sales have led to a number of job cuts, the latest impacting the Toledo, OH plant producing the Wrangler.
Stellantis, the Euro-American automaker formed by the merger of Fiat Chrysler Automobiles and France’s Groupe PSA, has struggled for much of this year to reverse declining sales and earnings. It suffered a 27% dip in net operating income for the third quarter and warned investors it would miss its full-year targets.
The company has initiated a series of temporary layoffs in recent months, the cuts primarily targeted at two of its traditionally most profitable brands, Dodge and Jeep. Late last month, operations at the Warren Truck Assembly Plant near Detroit was idled – again. The facility, which builds both Jeep Wagoneer and Grand Wagoneer models, let go of 1,100 workers during the third quarter due to sluggish demand. Now, 1,100 more workers will be furloughed at a manufacturing complex in Ohio.
The cuts come at a time when the auto industry is facing increasing concerns about the future. Nissan, facing one of its worst financial crises in a quarter century, will cut 9,000 jobs. Separately, a European business publication reported that Audi is considering cuts that could extend to thousands of jobs.
“Difficult actions”
Jeep also cut 1,100 jobs at its Wagoneer plant. It’s betting on new price cuts to boost sales.
The latest cuts impact 1,100 union-represented workers at the Toledo Assembly Complex in Ohio. It’s comprised of two separate plants which produce both the Jeep Gladiator pickup and the Wrangler SUV.
In a statement, the automaker said 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.”
The Toledo Assembly Complex now will see the elimination of one of two shifts.
Stellantis added that it is trying to “navigate…a transitional year,” and has focused 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
A disastrous year
Stellantis CEO Carlos Tavares is coming under increasing pressure as sales and earnings tumble.
As recently as a year ago, Stellantis was being hailed as a major success story following its trans-Atlantic merger, analyst John McElroy, of BlueSky Productions, wrote in a report on the automaker. That changed rapidly this year as the automaker reported one weak quarter after another.
All four of the automaker’s Detroit-based brands are struggling. Chrysler is down to a single product line, the slow-selling Pacifica minivan. Dodge is waiting for the delayed launch of its new all-electric Charger Daytona. And both Jeep and Ram have suffered an unexpectedly sharp slump in sales. Even the debut of an all-new makeover of the Ram 1500 pickup failed to motivate the market as much as the division expected.
That has hammered the Stellantis bottom line while hitting the automaker’s workforce with one temporary or indefinite layoff after another.
In turn, that has contributed to growing friction between labor and management. The United Auto Workers Union recently gave notice it may strike at several plants. A variety of issues are on the table, notably the union’s claim that the automaker has delayed reopening its now-shuttered assembly plant in Belvedere, Illinois. That was one of the requirements included in the contract the two sides agree to late in 2023, settling a lengthy walkout.
More Stellantis News
- Nissan Cuts 9,000 Jobs as it Goes Into “Emergency Mode”
- Ford Idles F-150 Lightning Production as Sales “Tank”
- 1,100 Laid Off at Jeep Wagoneer Plant
Cuts hit other automakers
Nissan CEO Makoto Uchida announced sweeping changes to bring the company back into the black.
On the positive side, U.S. auto sales are expected to near 16 million for the first time since 2019, before the COVID pandemic led to months-long production cuts.
But not all manufacturers have benefited. General Motors has had strong sales and is on a path towards record full-year profits, CEO Mary Barra announced last month. Ford and Chrysler have struggled financially. And even Toyota has been challenged, reporting its first year-over-year earnings dip in some time for the July-September quarter.
Toyota sales also were down, though largely due to production snags impacting key products, including the next-generation 4Runner SUV. If anything, the company is trying to accelerate production to fill weak dealer inventories. And, even if the U.S. market weakens it has no plans to lay off workers, Toyota Group Vice President David Christ said during a meeting of the Automotive Press Association on Wednesday.
On the other hand, Ford is going to “adjust production” mid-month at the plant producing its slow-selling F-150 Lightning, a battery-electric pickup. About 730 workers will be furloughed through January 6. Nissan, meanwhile, Nissan is switching to “emergency mode,” CEO Makoto Uchida said Thursday, to deal with worsening sales and earnings. That will cost 9,000 jobs. As for Audi, a report in business publication Manager Magazin said the automaker could cut thousands of contract jobs due to declining earnings.
Another company run by brain-dead, overpaid Execs who thought they could price their junk sky high.
It don’t work that way, idiots.