Business & Tech
Fiat Chrysler to Idle 1,420 Workers 'Indefinitely'
The layoffs reflect slow sales of Chrysler 200 midsize sedan and increasing demand for trucks and SUVs, the company said.
STERLING HEIGHTS, MI – Fiat Chrysler Automobiles NV said Wednesday it will lay off about 1,420 production workers at a Sterling Heights Assembly plant and Sterling Stamping for an indefinite period as demand for the midsize sedan produced there slows.
United Auto Workers union officials and city and state officials were notified of the layoffs, which include the elimination of an afternoon shift, according to the statement.
About 1,900 workers will remain on one shift at the plant. Sales of the Chrysler 200 are slowing amid growing U.S. demand for crossovers and pickups, the company said.
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“Our truck and SUV plants are running six days a week about 20 hours a day,” the company said. “And while 1,300 people will be impacted by layoffs (at Sterling Heights Assembly), we have been able to add 11,000 hourly jobs in Michigan since 2009 to keep up with that demand.”
The 1,400 affected employees include 120 at Sterling Stamping.
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The indefinitely laid-off employees will be placed in other open full-time positions in Metro Detroit “as they become available.” Eligibility for the jobs will be based on seniority.
The layoffs will start July 5.
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