Stellantis NV said Wednesday it plans to cut a shift at its Toledo plant that builds Jeep Gladiator pickups, which will result in about 1,100 indefinite layoffs by early next year.
The move from two to one shifts does not come as a surprise, with Gladiator sales slowing this year and the automaker trying to slash pent-up inventories of the pickup as well as other models before the end of the year. The automaker said the cut could take effect by as early as Jan. 5, and that it had issued the necessary notices to local and state authorities.
Gladiator production has been either paused or scaled back multiple times this year already, including for the past several weeks, as workers were temporarily laid off. The Gladiator is built at the same Toledo Assembly Complex as the Jeep Wrangler SUV, which has also slowed or stopped production recently.
“As Stellantis navigates a transitional year, the focus is on realigning its U.S. 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,” a Stellantis statement sent by spokesperson Jodi Tinson said. The statement added that the company planned to eventually return to prior production levels after regaining its “competitive edge.”
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