Stellantis (STLA.US) starts a new round of layoffs, will cut 1,100 jobs at the Jeep factory in Ohio.

Stellantis (STLA.US) announced that it will lay off approximately 1,100 workers at its Jeep factory in Toledo, Ohio, in the latest round of layoffs taken by the automaker due to excess inventory and declining sales. The company will transition the two-shift operation at the south Toledo plant to a single shift, which produces Jeep Gladiator pickup trucks. The affected members of the United Auto Workers union will receive supplemental compensation, combined with state unemployment benefits, equivalent to approximately 74% of their normal wages. Their healthcare benefits will continue for two years. Stellantis stated that this decision is necessary to manage production levels to better align with sales, while also working to clear out a significant amount of unsold vehicles. In a statement, the automaker said, "These are difficult actions, but they are necessary for the company to regain a competitive edge and eventually return production to previous levels." Since the sharp drop in U.S. sales led to nearly halving profits in the first half of the year, CEO Carlos Tavares has been laying off employees and reducing production capacity at American factories. In the third quarter, PSA Group's U.S. deliveries dropped to the lowest levels since the company was founded. Despite strong demand in the U.S. market for PSA Group SUVs, sales of five out of the six brands under PSA Group declined, with Jeep, the classic SUV brand, seeing a 6% drop in sales. In February of this year, Stellantis laid off approximately 1,200 workers at the north Toledo plant, which produces Jeep Wranglers. In September of last year, Tavares appointed the new CEO of the brand, Antonio Filosa, who has been lowering prices and adding features to attract buyers.