Stellantis Halts Production at Detroit Assembly Complex – Mack

Stellantis has announced a temporary halt in production at its Detroit Assembly Complex – Mack (DACM) facility for the week of September 30, 2024. This facility manufactures popular models such as the Jeep® Grand Cherokee, Jeep Grand Cherokee 4xe, and Jeep Grand Cherokee L. The decision to pause operations comes as the automaker deals with an oversupply of vehicles at dealership lots, leading to a need for drastic measures to manage the excess inventory.

During this production shutdown, certain groups of employees will still be required to report to work. Team Leaders for the General Assembly (GA) and those in the Paint department are expected to maintain their schedules. Specific teams, including the Body-in-White (BIW) PDR and various paint teams, will continue operations to support essential production processes. 

In addition to the temporary production halt, Stellantis will lay off 312 temporary and seasonal workers and 105 full-time employees at the Mack facility and its DACJ (Jefferson) facility, which produces the same models. These layoffs contribute to a broader trend of job reductions across Stellantis U.S. facilities.

The decision to halt production and implement layoffs comes amid increasing pressure from dealerships struggling to sell a growing stockpile of high-priced SUVs and trucks. Dealers have expressed frustration over the rising number of unsold vehicles, especially larger models that have experienced a slowdown in sales. This inventory surplus has prompted Stellantis to make swift adjustments to its operations.

In contrast to the production halt in Detroit, Stellantis has been expanding its operations in other regions. Recently, the company launched the three-row Grand Cherokee L in the Egyptian market. This model, which was exclusively produced at the DACM facility, will now also be assembled locally at the Arab American Vehicles (AAV) plant in Cairo. 

Additionally, the United Auto Workers (UAW) union has threatened to strike, accusing Stellantis of violating its 2023 Labor Agreement by delaying the reopening of the Belvidere Assembly Plant in Illinois. Stellantis has denied these claims and stated that any potential strike would be illegal under the current agreement.

As Stellantis navigates these challenges, the future of its production strategy will be closely watched, primarily as the company seeks to balance inventory management with workforce stability. The coming weeks will be critical in determining how the automaker adapts to ongoing market pressures while ensuring the smooth operation of its facilities.