Chrysler-parent, Stellantis (NYSE:STLA) announced its intention to temporarily reduce a shift at a Jeep factory in Detroit and make adjustments at another Jeep plant in Toledo, Ohio. These changes, according to the automaker, are expected to result in job cuts.
The car manufacturer, which holds ownership of Ram, Chrysler, Dodge, and Fiat brands, announced its intention to submit Worker Adjustment and Retraining Notification notices to the relevant governments and the United Auto Workers union as a precautionary measure.
This decision comes as the company aims to navigate vehicle sales management in compliance with California's emissions regulations, which are assessed on a state-specific level.
Per spokeswoman Jodi Tinson, the notices specify 2,455 workers who could be impacted at the Detroit Assembly Complex – Mack plant, responsible for manufacturing various versions of the Jeep Grand Cherokee.
Additionally, 1,225 workers at the Toledo Assembly Complex, where the Jeep Wrangler and Gladiator are produced, may also be affected. Tinson noted that the majority of those affected in Toledo are likely to be supplemental employees.
However, Tinson said the impact “will definitely be lower at Mack and could be a little bit lower at Toledo.”
According to Tinson, the complex UAW contract has led the automaker to account for every potentially affected individual.
According to a company press release, “The Detroit Assembly Complex – Mack plant will temporarily move from a three shift to a two-shift operating pattern. The two-shift operation also will allow the Mack team to focus its attention on improving the operational performance and throughput at the plant in the event that a change in the regulations or marketplace allows for an increase in volume.”
“The Toledo Assembly Complex will move from an alternative work schedule to a traditional two-shift operating pattern as agreed upon during 2023 UAW negotiations.”
The jobs losses take effect as early as Feb. 5.