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Stellantis (STLA+1.30%), the automaker behind Jeep, Ram, and Chrysler, announced this week that it will cut 1,100 jobs at a plant in Toledo, Ohio, according to the Detroit News. The company has been facing difficulties lately selling its cars in North America.
In a statement sent to the newspaper, the company said that “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.”
In its most recent earnings release, Stellantis said that net sales were down 20% from a year prior. Auto dealers who sell its products have complained that high prices have left inventories piling up. Plus, they think that management decisions at the automaker are leading to product degradation that is also driving away customers. In a letter to the company, they wrote:
“For over two years now, the U.S. Stellantis National Dealer Council has been sounding this alarm to your US executive team, warning them that the course you had set for Stellantis was going to be a disaster in the long run,” the group said in the letter. “A disaster not just for us, but for everyone involved — and now that disaster has arrived.”
The Toledo factory produces Jeep Gladiator pickup trucks.
