In response to a significant drop in sales, Stellantis is cutting a shift at its Warren Truck Assembly Plant in Michigan, impacting approximately 1,600 workers. The move comes as the automaker reported a 21% decline in U.S. sales for the second quarter of 2024 compared to the same period last year.
"Stellantis is adjusting the operating pattern at its Warren Truck Assembly Plant to align production with sales," said company spokeswoman Jodi Tinson in a statement emailed to the Detroit Free Press. "The plant will run one shift for the month of July. The company will continue to monitor demand and take the necessary action to balance inventories."
The Warren plant, which produces the Jeep Wagoneer, Wagoneer L, Grand Wagoneer and the Ram 1500 Classic, typically operates two shifts per day and employs about 3,300 hourly workers. The shift reduction will temporarily lay off nearly half of its workforce.
Additionally, Stellantis announced production adjustments at its Toledo, OH, plants. The Toledo South plant, which manufactures the Jeep Gladiator, will shut down from July 8 until August 19 for retooling and alignment with sales. Workers will be reassigned to the Toledo North plant, which produces the Jeep Wrangler and Wrangler 4xe, during this period, except for a scheduled summer vacation week in early August.
The decision to cut shifts and adjust production follows statements from Stellantis CEO Carlos Tavares, who, during the company's recent Investor Day, emphasized the need for a turnaround at U.S. plants and hinted at shifting more production to cost-effective countries.
An analysis by AutoForecast Solutions indicated Stellantis' production forecast is down by 35,000 units, primarily affecting the Ram full-sized truck and ProMaster commercial van. The company is grappling with managing the American brands acquired in 2021.
United Auto Workers (UAW) President Shawn Fain criticized Stellantis' decision, arguing the company could maintain the two-shift operation at Warren.
"Stellantis can afford to keep Warren Truck running at two shifts; they just want to find another penny to pinch at the expense of hardworking autoworkers," Fain told the Free Press. "Thanks to our contract, these workers will get layoff pay and benefits in the meantime while we fight to make sure Stellantis stops trying to kill U.S. jobs."
