After the recent strike in the auto sector in the United States, which Stellantis managed quite successfully thanks to quick negotiations and just as quickly found a common ground with the unions, the Franco-Italian-American group will no doubt soon face new grievances.
Indeed, Stellantis recently reported more than 3,500 of its employees in the United States that they may soon face job lossesthe solution that the manufacturer prescribes “New standards aimed at promoting the energy transition”.
The measure affects 2,455 employees at the Mack plant in Detroit, Michigan, and 1,225 at the Toledo, Ohio plant, a company spokesman said.
Fewer layoffs than expected?
However, Stellantis was keen to stress that the actual number of job cuts should be “Much less” in Detroit and “a little lower” in Toledo. This social plan aims to bring vehicle production in line with California’s state-by-state emissions standards.
The Stellantis solution is directly related to the compliance of 13 American states with the standards defined by the CARB (California Air Resources Board), a Californian agency that is dedicated to improving air quality. These standards require decrease in the number of diesel locomotives in dealershipsthus favoring hybrids and 100% electric cars to accelerate the energy transition.
The Mack plant in Detroit specializes in the production of Jeep Grand Cherokee models, including the 4xe hybrid version. The Toledo plant also produces various Jeep models, such as the Gladiator, Wrangler and the Wrangler 4xe hybrid.
Stellantis faces California law
Faced with these regulatory constraints, Stellantis was forced to adapt its production to environmental requirements.
In 2019, Ford, Honda, Volkswagen and BMW entered into an agreement to waive California’s regulatory authority, planning to measure each group’s sales nationally, rather than at the state level, as is the case with other manufacturers, including Stellantis.
In a letter addressed to California authorities, Stellantis stressed that its exclusion from the development creates a “two-speed” industry that puts the livelihoods of its 56,000 employees at risk.
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Source: Auto Plus
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.