Stellantis Halts Jefferson North Production Amid Inventory Concerns

Stellantis has halted production at its Jefferson North Assembly Plant (JNAP) in Detroit for the full week of September 30th. This plant, a key part of the Detroit Assembly Complex, manufactures the Jeep® Grand Cherokee, Jeep Grand Cherokee 4xe, and Dodge Durango. The decision comes as Stellantis grapples with an oversupply of vehicles at dealership lots, prompting the automaker to take drastic steps to manage the surplus.

The suspension follows earlier actions by Stellantis to reduce shifts at the Jefferson plant throughout the week. A company representative stated that the decision is part of broader efforts to address challenges in the U.S. market, explaining that operations at the facility have been reviewed “on a shift-by-shift basis” to determine whether further reductions were necessary. While workers have been told to expect a return to work on October 7th, Stellantis has cautioned that this date may change depending on how quickly the inventory stabilizes.

Along with the temporary production halt, Stellantis is laying off 312 additional temporary and seasonal workers and 105 full-time employees at Jefferson and the other Detroit Assembly Complex facility (the Mack Assembly Plant or DACM), which also builds the Jeep Grand Cherokee and Grand Cherokee L.

These cuts add to job reductions at other Stellantis facilities, including the Jeep plant in Toledo and the Sterling Heights Assembly Plant (SHAP), where the popular Ram 1500 pickup truck is produced.

The rising stockpile of high-priced SUVs and trucks has pressured Stellantis to make swift adjustments. Dealers have expressed frustration over the growing number of unsold vehicles, particularly larger models, which have seen a slowdown in sales.

Meanwhile, the United Auto Workers (UAW) union has raised concerns about the job cuts and fears that production of the Dodge Durango could be moved across the Detroit River to Windsor. The UAW has threatened to strike, accusing Stellantis of violating its 2023 Labor Agreement by delaying the reopening of the Belvidere Assembly Plant in Illinois, a claim the company has denied. Stellantis has countered that any strike would be illegal under the current agreement.

Source: The Detroit News