What's happened
Ford is reducing work hours for its Cologne plant workers due to lower demand for electric vehicles, while Stellantis will cut shifts at its Toledo plant amid declining Jeep Gladiator sales. Both companies are adjusting to market pressures and high inventory levels.
Why it matters
What the papers say
According to Business Insider UK, Ford's Cologne plant is adjusting production due to lower-than-expected demand for electric vehicles, with a spokesperson stating, "The significantly lower than expected demand... requires a temporary adjustment of production volumes." Meanwhile, The Independent reports that Stellantis is reducing shifts at its Toledo plant, citing a nearly 21% drop in Jeep Gladiator sales this year. CEO Carlos Tavares emphasized the need for these actions to regain competitive edge, stating, "These are difficult actions to take, but they are necessary." Bloomberg highlights the layoffs at Stellantis, noting that affected workers will receive supplemental compensation to maintain a portion of their pay. This reflects a broader trend in the automotive industry as companies navigate changing consumer preferences and economic pressures.
How we got here
Ford's decision follows disappointing electric vehicle sales in Germany, prompting a temporary adjustment in production. Stellantis is responding to a significant drop in Jeep Gladiator sales, which have decreased nearly 21% this year.
More on these topics
-
Toledo is a city in and the county seat of Lucas County, Ohio, United States. A major Midwestern United States port city, Toledo is the fourth-most-populous city in the U.S. state of Ohio, after Columbus, Cleveland, and Cincinnati, and according to the 20
-
Stellantis is the Dutch-based multinational automotive manufacturing corporation resulting of the merger of French automaker Groupe PSA and Italian-American automaker Fiat Chrysler Automobiles, following completion of a 50-50 merger agreement.
-
The International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America, better known as the United Auto Workers, is an American labor union that represents workers in the United States and Canada.