Stellantis to Lay Off 51 Workers at Detroit Assembly Complex – Mack

The United Auto Workers (UAW) Local 51, representing workers at the Detroit Assembly Complex – Mack (DACM), has announced that Stellantis will implement indefinite layoffs affecting 51 full-time employees, effective November 2, 2024. This decision comes as the company faces ongoing challenges within the automotive industry.

Layoff Details – 

Stellantis informed UAW Local 51 of the layoffs this afternoon, prompting discussions between the company and the union this week. Affected employees will be contacted on Wednesday. To support those impacted, the Unemployment Insurance Agency, Michigan Works, and various support groups will be at the UAW Local 51 hall on Wednesday from 12:00 PM to 3:00 PM to assist with questions regarding state benefits. Following this, UAW Local 51 will hold a rally at 3:00 PM featuring international UAW leadership.

Production Changes and Market Challenges – 

The layoffs at DACM come as Stellantis idled production at its sister facility, the Detroit Assembly Complex—Jefferson (DACJ), this week. The news coincides with high dealer inventories for the Jeep® Grand Cherokee, Jeep Grand Cherokee L, Jeep Grand Cherokee 4xe PHEV, and Dodge Durango. Stellantis is struggling to sell these popular full-size SUVs, with rising prices outpacing competitors amid high interest rates and inflation.

Public sentiment has also turned against the company, as many are unhappy with its direction under CEO Carlos Tavares. Notably, Jeep has phased out the HEMI engine from the Grand Cherokee lineup, opting for an all-Pentastar V6 configuration. Furthermore, the Durango will enter 2025—marking its 20th year of HEMI production—without the HEMI V8, reflecting a broader shift in Stellantis’ strategy.

About DACM – 

Located at 4000 St. Jean Avenue in Detroit, the DACM is about 3,000,000 square feet and produces several Jeep Grand Cherokee models, including the Grand Cherokee L and the Grand Cherokee 4xe. FCA invested $1.6 billion in the facility in 2019, which aimed to create approximately 3,850 new jobs.

Community Impact – 

The layoffs raise concerns for workers and the local community. UAW Local 51 is committed to supporting affected employees and facilitating discussions with relevant support agencies as they navigate this challenging period.