Stellantis to lay off 400 workers at Detroit parts facility

By Nora Eckert

DETROIT (Reuters) -Stellantis added to its rising tally of layoffs on Friday, saying 400 workers at a Detroit automotive parts facility would indefinitely lose their jobs as the carmaker reduces costs in its struggling North American business.

“As Stellantis navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025,” the company said in a statement.

The automaker on Wednesday laid off about 1,100 employees at a Jeep Gladiator plant in Ohio, and in August cut as many as 2,450 unionized jobs at a Michigan facility as it ended production of the Ram 1500 Classic truck.

Stellantis’ emphasis on cost-cutting has intensified as CEO Carlos Tavares tries to reverse its sliding sales and profits in the U.S.

Tavares recently shook up his top management, and the company announced he would retire after his contract ends in early 2026. Stellantis’ stock is down about 41% this year.

While the company has reduced its salaried workforce through voluntary buyouts, job cuts among its manufacturing employees represented by the United Auto Workers union have gathered the most attention from politicians.

President-elect Donald Trump recently warned that he would place a 100% tariff on Stellantis if the automaker tried moving U.S. jobs to Mexico.

“Our members are ready to build Jeeps, but management’s missteps are standing in their way. We are prepared to use every tool in our arsenal to fight back,” the UAW said in a statement.

The UAW endorsed Vice President Kamala Harris for U.S. president, and sharply rebuked Trump.

UAW President Shawn Fain has threatened a nationwide walkout at Stellantis facilities, alleging the automaker has failed to keep promises it made with the union last autumn. Some local union chapters have voted to authorize a strike.

Nearly 80 members of Congress last month urged Stellantis to honor investment commitments that are part of its agreement with the union.

Stellantis has said it is abiding by contract terms.

(Reporting by Nora Eckert, editing by Franklin Paul and Rod Nickel)