Stellantis Announces Layoffs at Detroit Assembly Complex

Stellantis has informed its employees at the Detroit Assembly Complex of upcoming layoffs, signaling a continuation of staff reductions following similar cuts at other Detroit-area facilities. The complex, which includes the former Jefferson North Assembly Plant (JNAP) and the Mack Assembly Plant—now referred to as DACJ and DACM, respectively—will soon lay off hundreds of workers. This move is part of Stellantis’ broader strategy to streamline operations and enhance efficiency. It follows the recent announcement of workforce reductions at the Sterling Heights Assembly Plant (SHAP), where the Ram 1500 pickup truck is produced.

The automaker has communicated to the United Auto Workers (UAW) union that by October 1st, it will terminate contracts for a number of temporary, or “supplemental,” employees across various facilities. Additionally, full-time workers at these plants are also set to face layoffs, which Stellantis describes as part of its efforts to “optimize operational efficiency.”

Impact on Jefferson and Mack Plants – 

At the Detroit Assembly Complex—Jefferson (DACJ), 142 supplemental workers will have their contracts terminated, while 69 full-time employees will be laid off by the end of the month. This facility currently produces the Jeep® Grand Cherokee (WL74), Grand Cherokee 4xe, and Dodge Durango (WD) SUVs.

Meanwhile, at the Detroit Assembly Complex—Mack (DACM), which produces the Jeep Grand Cherokee, Grand Cherokee 4xe, and its three-row variant, the Grand Cherokee L (WL75), 170 supplemental workers and 36 full-time workers are slated for layoffs. The impact has been particularly significant for supplemental workers hired to cover shifts for regular employees.

In a communication with full-time DACJ workers, Stellantis stated that the layoffs would be “indefinite.” The company added, “We are continuing to take necessary actions to improve operations across all our facilities.”

Optimizing U.S. Operations – 

Stellantis spokesperson Ann Marie Fortunate confirmed the decision, explaining that these layoffs are part of the company’s broader efforts to improve efficiency in its U.S. operations. “Stellantis continues to take necessary actions to improve operations in the U.S. market,” said Fortunate. “This includes making changes to production at the Detroit Assembly Complex—Jefferson for general assembly only. Other operations at the facility will continue as scheduled to support production at the Mack Assembly Plant.”

The automaker also indicated that it will monitor operations at DACJ on a “shift-by-shift” basis, suggesting that further production cuts may be considered if needed.

A Challenging Market Landscape –

These recent layoffs are part of Stellantis’ response to ongoing challenges in the U.S. automotive market. The industry faces shifting consumer demand, supply chain disruptions, and rising production costs. In response, Stellantis is making workforce adjustments to remain competitive and adapt to changing market conditions.

The Detroit Assembly Complex spans over 6 million square feet across DACJ and DACM and plays a key role in producing models like the Jeep Grand Cherokee and Dodge Durango. While the current downsizing will affect DACJ, Stellantis emphasized that operations at DACM will continue uninterrupted as the company seeks to balance efficiency with market demand.

Looking Ahead –

The layoffs mark a significant shift for the Detroit Assembly Complex, a long-standing hub for SUV production. Stellantis’ commitment to optimizing its operations suggests that further adjustments may be on the horizon, depending on market conditions. The company has assured workers that it will continue to evaluate its production processes and keep them informed of any additional changes.