The world's fourth largest car group Stellantis is now forced to stop production at yet another factory because sales cannot keep up.
Stellantis is forced to stop production at yet another car factory.
The crisis continues for the car giant Stellantis, which is experiencing falling sales and increasing inventories. Production at the Detroit plant that makes the Jeep Grand Cherokee and Dodge Durango has been temporarily suspended. At the same time, there is criticism of managing director Carlos Tavares' high salary.
In recent weeks, Stellantis has been forced to make a number of drastic decisions to meet the economic challenges. In addition to redundancies and asset sales, the company has now also found itself forced to halt production at the factory in Detroit.
The employees at the factory were informed about the production stop on Friday 27 October. The break runs from 28 October to 1 November. Stellantis justifies the decision with falling sales figures.
– Stellantis continues to take the necessary measures to adapt production to sales, says Ann Marie Fortunate, spokesperson for Stellantis, to Carscoops.
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The production halt comes on top of the dismissal of 200 employees at the factory last month. In the US, several Stellantis dealers have heavily criticized the company's managing director, Carlos Tavares.
Among other things, the criticism is aimed at Tavares' annual salary of DKK 416 million. Especially in light of the current situation of crisis among several of the group's 14 brands. However, Stellantis are far from the only ones struggling with a bad economy.
According to German unions, Volkswagen will close up to 3 factories in the country. It could lead to thousands of layoffs. Read more about it here .
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