Stellantis begins layoffs at Warren plant, says more layoffs to come

Stellantis is cutting 1,100 jobs in Warren, Mich., and revealed further layoffs are likely due to falling sales, complicating a series of recent problems facing the automaking giant.

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The company began laying off workers at its Warren Truck Assembly Plant over the weekend after ending production of the Ram 1500 Classic. The layoffs were first announced in August. Some more senior employees may be reassigned to other Stellantis facilities. A spokesperson for Stellantis said in a statement that the company “will be reducing its workforce indefinitely across its business.”

READ: Stellantis isn’t just killing the Ram 1500 Classic, it’s killing the 2,450 workers who built it

NPR noted that it’s unclear how many more jobs Stellantis plans to lay off. Jessica Caldwell, director of insights for Edmunds, said Stellantis made mistakes in selling more upscale, more expensive cars in the U.S., especially the Jeep brand.

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“Jeep is a very basic American brand that’s rugged, can do anything, can go anywhere,” she said. “(Now) they’re expensive. They’re gorgeous, but it seems to be a little bit off target in terms of where people are right now.”

Several Stellantis brands are struggling with growing inventories in the United States. In early June, both Jeep and Ram had inventories at least double the industry average, and those brands aren’t the only ones facing oversupply. Alfa Romeo, Chrysler and Dodge all have inventories well above the industry average. Recently, the Dodge Hornet and Jeep Grand Wagoneer were revealed to be the slowest-selling new cars in the United States, with both having a 428-day supply.

Compounding Stellantis’ recent problems, profits fell 48% in the first six months of the year.

Stellantis also has a bitter feud with the United Auto Workers (UAW). The company recently filed eight new lawsuits against the union and its 23 local chapters after union representatives threatened a strike over the automaker’s delay in planned investments at its Belvedere, Illinois, plant.

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