Stellantis, the multinational automotive manufacturer, recently announced its plan to eliminate production shifts at two of its assembly plants, which could potentially lead to significant job cuts. The affected plants are located in Toledo, Ohio and Detroit, Michigan.
The Toledo plant, which is responsible for building the Jeep Wrangler and Gladiator models, and one of the Jeep Grand Cherokee plants in Detroit, will transition from three shifts to two. This change will take effect on February 5, 2023. Although the specific number of job losses has not been disclosed, it is expected that the move will lead to a considerable reduction in the workforce.
According to Stellantis, the shift reductions are partially due to the need to manage vehicle sales in compliance with California emissions regulations, which vary from state to state. As a result, the company has stopped sending gasoline vehicles to dealerships in 14 states that follow California's regulations, except in cases where customers have placed specific orders.
The Detroit plant will also transition to two shifts, with the aim of improving operational efficiency and throughput. The company anticipates that there may be an opportunity for increased production if regulations or market conditions change in the future.
In accordance with the Worker Adjustment and Retraining Notification Act, which requires a 60-day notice for significant layoffs, Stellantis filed notices about the impending job cuts on Thursday. However, the actual number of affected employees at each plant may be lower than the 500-person threshold that defines a mass layoff under this act.
Notably, the Toledo plant workers were among the first to strike during the United Auto Workers (UAW) contract negotiations with the Detroit 3 in September. Additionally, this plant was the only Stellantis assembly facility to vote against the ratified contract, with an overall ratification margin of more than 2-to-1.