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Stellantis readies for another round of layoffs
The European parent of the Chrysler brand says it’s a needed move as they continue to re-tool American operations for a strong start to 2025.
DETROIT (FOX 2) - More layoffs for Stellantis. The Stellantis Detroit River Yard on Freud Street in Detroit will soon be about 400 UAW workers lighter with a new round of layoffs set forth.
The European parent of the Chrysler brand says it’s a needed move as they continue to re-tool American operations for a strong start to 2025. That is when the layoffs will be effective.
"The big picture here is that Stellantis has been looking to deal with lower sales, with lower profits - things of that nature so they’ve looking globally at areas they can cut," said Jeff Gilbert.
Gilbert has been on the auto beat for decades at WWJ NewsRadio 950. He says Stellantis is also trying to be more efficient in how it operates.
Stellantis says the layoffs are due to a plan to transition the Freud Street facility to a third-party service provider.
The automaker says it’s honoring its deal with the UAW by giving impacted workers supplemental unemployment benefits, and continuing their healthcare coverage for two years.
"What they’re doing goes far beyond just cutting jobs," Gilbert said. "They’ve had major management shakeups. They’ve changed the heads of all of their brands."
And that’s leading to more uncertainty for workers, as the UAW looks at possibly going back to the picket line.
Related: Stellantis hits back at UAW with federal lawsuit as tensions escalate
"The UAW has threatened to strike, they’ve taken strike authorization votes at a number of locals," Gilbert said. "Not all of those have passed - but a number of them, have."
FOX 2 reached out to the UAW to get their reaction to this round of layoffs. We haven’t heard back but the union has recently said it will keep its pressure up on Stellantis to make sure it honors its agreements made a year ago.