DETROIT (AP) — Jeep maker Stellantis is planning to lay off an unspecified number of workers at its U.S. factories in the coming months to deal with a rapidly changing global auto market, the company said Tuesday.
The statement comes as the company faces increased capital spending to make the transition from gasoline vehicles to electric autos. It also has reported declining U.S. sales in the first quarter, and it has higher costs due to a new contract agreement reached last year with the United Auto Workers union. Stellantis has about 43,000 factory workers.
“These actions will help improve productivity and ensure the company’s long-term sustainability in a rapidly changing global market,” the Stellantis statement said.
The company wouldn’t give details of when the indefinite layoffs would start or state specific reasons for them, but the trade publication Automotive News reported Monday that Stellantis had laid off 199 full-time workers at its Ram pickup truck factory in Sterling Heights, Michigan, north of Detroit.
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