To cut costs, Stellantis continues to cut jobs and scale back U.S. vehicle production to align with sales projections. A weeklong production pause began on Monday, October 28, at FCA’s Detroit Assembly Complex in the Mack and Jefferson plants.
This product slowdown follows a series of Stellantis layoffs that began on October 12th when 1,100 workers were laid off from its Warren Truck Assembly Plant. Jefferson and Mack plant employees are temporarily laid off during the stop-production. However, it is anticipated that there will be some indefinite layoffs right around the corner.
High inventory levels across dealerships in the U.S. sparked this temporary shutdown, which is part of the automaker’s plan to align inventory levels more closely with sales projections.
It’s no industry secret that Stellantis is struggling this year. The automaker’s U.S. sales fell by 14% in the first half of 2024, are they are currently down 20% in Q3. The surplus inventory sparks dealer complaints, caution, and concerns among investors. The automaker is significantly reducing its deliveries in hopes of reducing the inventory levels to no more than 33,000 vehicles in U.S. dealer inventory by the close of 2024.
As of October 1st, Jeep Grand Cherokee sales are down 12% year to date, with only 160,939 units sold. Durango sales are down 13%, at 46,870, with rumors swirling that production of the iconic model will cease in 2027.
Stellantis will continue to take significant measures to navigate the challenges posed by declining sales and high inventory levels. As the company works to stabilize its inventory levels and regain momentum, it will be crucial for the automaker to carefully manage its workforce and production strategies to get back on track.
