WASHINGTON - Stellantis has notified thousands of workers in the US states of Ohio and Michigan of potential layoffs, attributing the move partly to California rules that limit where vehicles can be sold.
The European automaker notified 2,455 workers in Detroit and 1,225 in Ohio of potential job loss under the federal Warn Act, which requires early notification of major layoffs.
The company expects the actual number of layoffs to be "much lower" than the Detroit figure and "slightly lower" than the Ohio number, said Stellantis spokeswoman Jodi Tinson.
"Due to the complexity of our bargaining agreement related to the placement of affected employees, Warn notices were issued to more employees than will ultimately be impacted out of an abundance of caution to give employees notice even if not legally required," Tinson told AFP in an email.
The notification hits the Midwestern states only weeks after workers at Stellantis and fellow Detroit giants General Motors and Ford ratified sweeping new wage increases following a roughly six-week strike organized by the United Auto Workers union.
The job cuts affect Stellantis' Mack assembly plant in Detroit, where the Grand Cherokee and hybrid Grand Cherokee 4xe are assembled; and the Toledo Assembly plants where the Jeep Wrangler and hybrid Jeep 4xe are put together.
The moves at the plants are to "manage sales of the vehicles they produce to comply with California emissions regulations that are measured on a state-by-state basis," said a Stellantis statement.