Stellantis NV (NYSE:STLA, EPA:STLA), maker of Jeep, Chrysler, Dodge, Peugeot and Vauxhall vehicles, said it is cutting 1,100 jobs in the US as it continues to struggle with falling sales and too much inventory.
The Amsterdam-based group is laying off the workers at its Jeep plant in Toledo, Ohio, as it switches to one shift from two.
"As Stellantis navigates a transitional year, the focus is on realigning its US 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," a spokeswoman said.
She added that the company also aims to improve overall efficiency across the complex.
Last week's quarterly results from Stellantis underlined the problems facing the motor industry as it reported a 27% slide in third-quarter revenues, as vehicle shipments fell 36% in North America and 17% in Europe.
This followed a profit warning from the carmaker a month earlier due to its decision to help address performance issues in North America by slashing the levels of cars in US dealerships amidst a "deterioration in global industry dynamics".
By last week, the company had cleared 129,000 units of stock, mostly in the US, to “bring the business back into alignment and ensure that we have a strong start to 2025”.
European and US car makers have been hit hard by a slowdown in China and elsewhere this year with several other large manufacturers reporting sharply lower sales.