From CNBC: 2024-11-06 15:47:53

Automaker Stellantis plans to cut a manufacturing shift and lay off 1,100 workers at a Jeep plant in Ohio due to high inventory levels and lower earnings. The Toledo South Assembly Plant will reduce production to one shift to align output with demand for the Jeep Gladiator pickup. Layoffs effective Jan. 5.

Stellantis will provide laid off employees with one year of supplemental unemployment benefits, 74% of pay, followed by one year of transition assistance. Health-care coverage will continue for two years. The automaker, including its Jeep brand, is trying to recover from years of declining U.S. sales. Jeep is facing a potential sixth year of sales declines in 2024.

Jeep’s U.S. sales have dropped 34% from 2018 to less than 643,000 units last year. To boost sales, Stellantis has lowered pricing, rolled out special offers, and increased marketing spending. The plan aims to revitalize the brand and increase sales after years of decline in the competitive automotive market.



Read more at CNBC: Stellantis to indefinitely lay off 1,100 workers at Jeep plant in Ohio