### Stellantis Announces Major Layoffs Amid Declining Sales

Stellantis, the automotive giant behind brands like Chrysler, Jeep, Dodge, and Ram, is set to lay off 1,100 employees at its Warren Truck Assembly Plant in Michigan. The company, struggling with declining sales, has signaled that these layoffs won't be the last. Further indefinite layoffs are expected to impact represented employees across various locations, a company spokeswoman has indicated.

The Warren Truck Assembly Plant, which has been operational since 1938 and has produced over 16 million vehicles, is currently manufacturing the Ram 1500 Classic, the Jeep Wagoneer, and the Grand Wagoneer. The layoffs are primarily due to the discontinuation of the Ram Classic after the current model year. Reflecting on the decision first announced in August, Stellantis confirmed that layoffs would commence this Saturday.

These cuts will have broader ramifications for Stellantis' U.S. workforce, which numbers around 52,000. Some long-serving employees at the Warren plant may be reassigned to other facilities, possibly leading to further displacement of newer hires at these plants.

S&P Global Ratings attributes Stellantis' woes to a mix of "headwinds and operational missteps." Jessica Caldwell, an expert from Edmunds, believes that one significant misstep was Stellantis’ shift toward producing more luxurious, high-priced vehicles, such as the Jeep Grand Wagoneer, which starts at over $91,000. Caldwell argues that this strategy came at a bad time as consumers grow more frustrated with rising prices, making these vehicles less appealing.

Despite Stellantis experiencing profitability in the first half of 2024, profits plummeted by 48% compared to the same period in 2023. CEO Carlos Tavares has promised "corrective actions" aimed particularly at the North American market, emphasizing the necessity of maintaining margins to ensure the company's sustainability. With raising prices no longer viable, the company sees reducing costs as the only option.

Stellantis is also embroiled in a contentious dispute with the United Auto Workers (UAW) concerning various labor issues. Plans to reopen a shuttered plant in Belvidere, Illinois, have been delayed, igniting further tension between the company and the union. While Stellantis stands by its commitment to finding a solution for Belvidere, the UAW argues that the delay brings the plant reopening out of the current contract's scope, making it subject to new negotiations.

The union blames Stellantis’ troubles on "gross mismanagement," whereas the company points to industry volatility and sluggish electric vehicle (EV) adoption. As per the new contract, the union has secured the right to strike mid-contract over changes in manufacturing plans unless these changes result from uncontrollable market forces. The UAW has warned of potential strikes, dubbing its campaign "Stellantis Keep the Promise."

In a recent development, Stellantis has rejected a union proposal to support workers affected by the Belvidere delay. The company compared the proposal to the costly "Jobs Bank" program of the 2000s, stating that reestablishing such a provision would not be feasible, particularly given its past contribution to bankruptcies within the industry. Union president Shawn Fain criticized Stellantis for prioritizing stock buybacks over worker support, pointing out that the company's $3 billion in stock repurchases this year could have funded the union's proposal at a fraction of the cost.