Automotive giant Stellantis has temporarily halted production at a Detroit plant as the company grapples with declining sales and rising inventory levels.
Counter Financial Challenges
The plant, which manufactures the Jeep Grand Cherokee and Dodge Durango, will remain closed from October 28 through November 1, according to an announcement made to workers on October 27.
This pause marks yet another step in Stellantis's recent moves to counter its financial challenges.
The company, the world’s fourth-largest automaker, has faced ongoing difficulties, including layoffs, asset sales, and now, production stoppages, according to Boosted.
A spokesperson for Stellantis, Ann Marie Fortunate, confirmed the decision, citing "necessary measures to align production with demand."
200 Employees Laid Off
In addition to the recent production halt, Stellantis laid off 200 employees at the same Detroit facility last month.
Dealers in the U.S. have also voiced frustration over the compensation of CEO Carlos Tavares, who received an annual salary of approximately $60 million.
Critics argue that Tavares’ pay stands in stark contrast to the company’s current financial strain, which has impacted many of its 14 brands.
The struggles aren’t unique to Stellantis, as economic pressure continues to hit the automotive industry hard.
German automaker Volkswagen is reportedly preparing to close up to three factories in Germany, a decision that could result in thousands of job losses, according to German labor unions.
