European auto giant Stellantis announced on Thursday that it will 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 brands such as Peugeot, Fiat, and Chrysler, revealed it would reduce operations at the Toledo South Assembly Plant from two shifts to one starting in 2025. In addition, 400 employees will be reassigned to a “third-party service provider,” according to a statement.
“These difficult decisions are necessary to help the company restore its competitive position and eventually bring production levels back to previous standards,” Stellantis said.
The move comes as Stellantis reported a significant sales slump, with North American sales dropping 42% in the third quarter.
To help address the situation, the company has offered promotional deals to assist US dealerships in managing high inventory levels.
“As Stellantis navigates this transitional period, the focus is on realigning US operations for a strong start to 2025, which includes taking the tough but necessary steps to reduce inventory and adjust production to align with sales,” the statement added.
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