Stellantis reducing shifts at Warren Assembly Plant, citing sales and production

WARREN, Mich. (CBS DETROIT) — Stellantis announced it will reduce a shift at its Warren Truck Assembly Plant "to align with production and sales."

The company said about 1,600 of the 3,300 employees will be impacted by the temporary layoffs.

The plant produces the Jeep Wagoneer, Wagoneer L, Grand Wagoneer and the Ram 1500 Classic.

"Stellantis is adjusting the operating pattern at its Warren Truck Assembly Plant to align production with sales. The plant will run one shift for the month of July. The Company will continue to monitor demand and take the necessary action to balance inventories," spokesperson Jodi Tinson said in a statement.

The automaker announced in April that it was planning to lay off workers in the U.S. to cope with a rapidly changing auto market after it faced increased capital spending in making the transition from gasoline vehicles to electric autos. It also reported declining sales in the first quarter and higher costs due to a new contract agreement reached last year with the United Auto Workers union.

Stellantis reported on Tuesday a 21% decrease in total U.S. sales for the second quarter, selling 344,993 vehicles. Despite the drop in sales, the company said it saw a 4% increase in sales in the second quarter compared to the first quarter.