European auto giant Stellantis announced Thursday that it would lay off 1,100 workers at its Jeep factory in Toledo, Ohio, as part of efforts to “regain its competitive edge” amid declining sales.
The company, which owns 14 brands including Peugeot, Fiat, and Chrysler, revealed it would reduce operations from two shifts to one shift at the Toledo South Assembly Plant starting in 2025. Additionally, another 400 employees will be reassigned to a “third-party service provider,” according to the statement.
“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 statement said.
Stellantis sales sank in the third quarter, with a 42 percent drop in North America alone.
The group offered promotional deals as US dealerships have struggled to reduce their inventories.
“As Stellantis navigates a transitional year, the focus is on realigning its US 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,” it said.
