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FCA Cuts 1,300 Jobs at Small-Car Plant in Michigan
Fiat Chrysler Automobiles NV is eliminating one of two production shifts at its small-car factory in Sterling Heights, Mich., because of slumping sales.
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Fiat Chrysler Automobiles NV is eliminating one of two production shifts at its small-car factory in Sterling Heights, Mich., because of slumping sales.
The cutback, which will begin on July 5, will furlough 1,300 workers. The reduction will mark the first time FCA has eliminated a shift at a U.S. plant since Chrysler emerged from bankruptcy nearly seven years ago.
The Sterling Heights factory makes the slow-selling Chrysler 200 small sedan. Demand for the car collapsed late last year, plunging 38% in November-December and 63% in January-March. Now dealers have more than twice the normal inventory of unsold models.
Workers at the plant have already been idled for 12 weeks this year. A report last autumn indicated FCA plans to move Chrysler 200 production to Mexico and retool the Sterling Heights facility by 2018 to build the popular Ram 1500 pickup truck. CEO Sergio Marchionne has since indicated the company is looking for a partner to make the car.
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