TOLEDO, Ohio — The Stellantis Toledo Assembly Complex could lay off up to 1,200 employees as soon as Feb. 5. 

What You Need To Know

  • Stellantis' Toledo Assembly Complex plans to lay off more than 1,000 workers 

  • Company will go to two shifts, cites sales to comply with California emissions regulations

  • Stellantis said the move was agreed upon during negotiations with UAW

The end of the UAW strike isn’t the end of the story for union workers or the big three auto makers.

Workers at the Stellantis Toledo Assembly Complex are on notice that their jobs may get cut early next year. The company said it’s cutting production down to two shifts to help manage sales to comply with California emissions regulations.

Wayne State University Business Professor Marick Masters said Stellantis’ reasoning is a factor but not the only factor. 

“When these vehicles were out and popular, and people had more disposable income, and interest rates were lower that they were more affordable,” Masters said. “Now, because of rising interest rates and concerns about the economy, plus inflation, I think that they are less desirable, and you just reach a point in which the market becomes more saturated than before. And I think that’s what’s happening, that we’re seeing, and the slow down of some of these sales.”

Stellantis said fewer shifts was part of the agreement with the UAW.

The contract negotiations and agreement may have also had a broader effect on the entire car industry, with even non-union carmakers announcing significant wage increases since the strike, such as Volkswagen, Subaru, Toyota Hyundai and Honda. 

“I think that is directly in response and I think they did it early to get ahead of the UAW’s organizing strategy,” Masters said.

In a statement, Stellantis said it notified workers at its Toledo Assembly Complex earlier this month and that the job losses could come as soon as Feb. 5.