Production cuts are hitting the Stellantis NV plant in Toledo, Ohio, that builds the Jeep Gladiator pickup and Wrangler SUV this week, the latest of several factory pauses or slowdowns by the automaker as it deals with large vehicle inventories and other challenges.
The automaker paused production of the Gladiator at the Toledo Assembly Complex starting Monday, with temporarily laid-off employees expecting to return Sept. 23, according to a robocall and layoff instruction sheet sent to workers. It was not immediately clear how many total workers were laid off as of Monday afternoon.
“Stellantis continues to take the necessary actions to improve operations across the U.S. market in support of its dealer network; this includes making production adjustments where necessary to improve its competitiveness in the marketplace,” said a company statement sent by spokesperson Ann Marie Fortunate. “The Company will continue to monitor the situation to assess whether further production adjustments are needed.”
Workers who build Wranglers at the plant were also anticipating at least some shift cuts this week. But Fortunate said the Wrangler issues, which were being evaluated day by day, were due to a parts shortage from an external supplier, unlike the Gladiator pause.
Bruce Baumhower, the president of UAW Local 12, which represents workers at Toledo Assembly Complex, said the plant has struggled to produce the right mix of models and trims. He expected it will reset this week in order to better align production with the types of Gladiators and Wranglers that dealers want.
Baumhower said while it was clear Gladiator production would halt for the week, the Wrangler shift cutbacks and timing remained fluid as of early Monday afternoon. Second-shift of Wrangler assembly on Monday was canceled, however, according to a robocall sent by the company.
Stellantis also paused production of the Wrangler and Gladiator over the summer related to slower sales and pent-up inventories of both models. Second-quarter Gladiator sales were down 24% year-over-year, to 10,489 units. Wrangler was down 17%, to 38,896.
Other Stellantis plants in the U.S. have also temporarily trimmed shifts or fully paused production in recent months for similar reasons, including at the Warren Truck Assembly Plant, the Detroit Assembly Complex and the Trenton Engine Complex. The production cuts come amid a recent revolt against the company by its dealers, who have raised concerns about high vehicle prices, an unfavorable product mix, quality issues, insufficient marketing and more.
In a recent interview, Jeep CEO Antonio Filosa acknowledged brief production pauses earlier this month in plants that build the Wrangler and Grand Cherokee. But he said the big focus going forward would be finding ways to accelerate sales. Filosa and his North American chief, Bob Broderdorf, are planning an October tour of dealers across the country, as they work to launch a turnaround.
“We want to improve dealer inventory more on the sales side,” he said. “Some production adjustment has been done already, and probably a few others will be done in the future, but nothing big. The point is to accelerate retail sales. That’s why the road show (with dealers). That’s why (we plan to) intensify touch points with dealers.”
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