Stellantis To Lay Off Thousands Of Employees In USA

Stellantis, which owns brands like Jeep, Fiat, Citroen and more, is reportedly set to lay off thousands of its employees in the USA. According to reports, Stellantis is blaming the emissions regulations in the state of California for this step. 

The group has indicated that it will reduce shifts at its plans in Detroit, Michigan and Toledo, Ohio. In Detroit, where it manufactures the Grand Cherokee, 2,455 workers will reportedly be affected by this change in production plan. In Toledo, where the Wrangler and Gladiator are built, 1,225 workers are likely to be affected. 

Jeep sales in the USA have been lagging and to tackle this, Stellantis has decided to curb production. The Toledo plant will see a shift from an alternative work schedule to a two-shift schedule, while one of the three shifts at the Detroit plant will be removed. The job losses will reportedly take effect from the first week of February. 

Interestingly, Stellantias has lodged a petition against the California Air Resources Board (CARB) for subjecting it to stringent emissions norms that not all manufacturers have to comply with. Ford, Honda, Volkswagen and BMW struck a deal with the CARB that allowed them to have their emissions compliance measured by national sales rather than state-wise sales. Stellantis says this puts it at a competitive disadvantage against these manufacturers. Stellantis tried to join the aforementioned deal along with Geely and Volvo but was denied as reportedly, as Chrysler publicly questioned California for having its own rules. 

As a result, Stellantis has reduced shipments of internal combustion engine (ICE) powered vehicles as well as electric vehicles (EVs) in the 14 states that have adopted CARB’s norms. Dealers in these areas only have stock of plug-in hybrid vehicles (PHEVs) and those wanting to buy ICE or EVs had to specially order them from Stellantis.