Jeep-owner Stellantis announces mass layoffs, blames California
Stellantis has announced that it plans to cut what will likely be thousands of jobs from its Jeep plants in Detroit and Toledo, Ohio, blaming California’s emissions regulations for putting the company at a competitive disadvantage.
Stellantis, which also owns the Ram, Chrysler, Dodge, and Fiat brands, has indicated that 2,455 workers may be impacted at the Detroit plant where its makes the Jeep Grand Cherokee, as well as an additional 1,225 workers at a plant in Toledo that produces the Jeep Wrangler and Gladiator, according to The Detroit News. To curb production due to lagging sales of the Jeep brand, Stellantis plans to shift from an alternative work schedule to a traditional two-shift operation at the Toledo plant, and shave off one of its three shifts at the Detroit plant, which employs 4,600 people. The job losses will be in effect as early as February 5.
Stellantis, among other automakers, has been actively pushing back against Biden’s efforts to reduce carbon emissions and boost electric vehicles, arguing that strict regulations could result in billions of dollars of fines for the company.
According to Reuters, Stellantis has limited its shipments of both ICE vehicles and EVs to dealers in the 14 states that have adopted California’s emissions rules. Meaning, if you shopped in those states, only plug-in hybrid SUVs would be readily available in stock, but you’d have to special order an all-electric version or ICE models. Dealers in states that don’t adhere to California’s regulations (CARB) had the opposite scenario play out, of having no or very few hybrids in stock, and an ICE-only inventory. The rationale for all of this maneuvering, as The Drive points out, is in the 14 states that adhere to the California rules, manufacturers need to sell a certain percentage of zero-emissions vehicles and plug-in hybrids, meaning Stellantis had to prioritize these areas.
But here’s the rub for Stellantis: In 2020, Ford, Honda, Volkswagen, and BMW struck a special agreement with California to play by a different set of rules, where compliance is measured by sales nationwide, not just in CARB states. Stellantis says that changes the game and puts its company at a disadvantage because those numbers are easier to meet.
Volvo and Geely signed on to the pact with California following the original four automakers, and Stellantis tried to join but was turned down, according to Bloomberg. Why? Stellantis argues that it is being punished for when Chrysler publicly questioned California’s authority to establish its own rules back in 2019, along with other automakers, including General Motors and Toyota, as The Drive cited. Yesterday, Stellantis submitted a petition to California’s Office of Administrative Law, accusing the state of signing “underground regulatory scheme” with other automakers.
Electrek’s Take
Stellantis has been slow to shift to EVs, but it has been pouring billions into the effort. The Jeep Wrangler 4xe and Chrysler Pacifica hybrids are some of the best-selling EVs in California. But business hasn’t been steady: Last month, the automaker announced a recall of more than 32,000 vehicles due to a potential fire risk. And falling sales for ICE versions of the Jeep brand, mixed with high interest rates, has forced its hand into full-blown cost-cutting mode. And that, it says, means upending the lives of thousands of workers.
Still, it’s certainly not the first time the company has pointed a finger at the transition to EVs as the reason for layoffs. Earlier this year, Stellantis laid off about 1,350 workers from its plant in Illinois for those same reasons.
Interesting timing too, as the Big Three in Detroit – General Motors, the Ford Motor Company, and Chrysler (which Stellantis owns) – are also looking for ways to cut costs as they just agreed to what will amount to “record” pay increases following the United Auto Workers’ strikes this year. Lots of jobs are on the chopping block in the automobile industry, so we’ll be hearing that term “restructuring” a lot these days: Yesterday Volkswagen confirmed it too would cut thousands of jobs from its plant in an effort to slash $11 billion in costs.
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The all-electric luxury electric SUV is getting significantly cheaper. Lexus launched a new entry-level 2025 RZ trim with starting prices over $10,000 less than last year’s model. And you get just as much driving range.
2025 Lexus RZ electric SUV prices and driving range
Lexus launched its first dedicated EV last year, the RZ electric SUV. Starting at $55,175, the 2024 Lexus RZ 300e has a range of up to 266 miles.
The 2024 RZ 450e AWD, equipped with its dual-moto DIRECT4 system, has a range of up to 196 miles. Prices start at just under $60,000. Both models are offered in Premium or Luxury packages.
Lexus is drastically lowering prices for the 2025 model year. The 2025 Lexus RZ starts at $43,975, and that includes the $1,175 delivery fee.
At under $44,000, prices for the 2025 RZ start at over $10,000 less than last year’s model. The lower price tag comes as Lexus added a new entry-level RZ 300e FWD trim to the lineup.
The 2025 Lexus RZ 300e FWD still has an EPA-estimated 266-mile range (18″ wheels), so despite the lower price, it’s no loss from last year’s model. It’s powered by a 72.8 kWh battery pack from global leader CATL.
Lexus modified the subframe for the FWD model, replacing the rear eAxle from the AWD model. The result is a quieter, smoother drive.
Powered by a 71.4 kWh battery, the 2025 RZ 450e AWD has an EPA-estimated driving range of up to 220 miles (18″ wheels).
| 2025 Lexus RZ model | Starting Price* | EPA-estimated Driving Range |
| RZ 450e AWD | $48,675 | 220 miles |
| RZ 450e Premium AWD w/ 18″ Wheel | $52,875 | 220 miles |
| RZ 450e Premium AWD w/ 20″ Wheel | $54,115 | 196 miles |
| RZ 450e Luxury AWD | $58,605 | 220 miles |
| RZ 300e FWD | $43,975 | 266 miles |
| RZ 300e Premium FWD w/ 18″ Wheel | $48,175 | 266 miles |
| RZ 300e Premium FWD w/ 20″ Wheel | $49,415 | 224 miles |
| RZ 300e Luxury FWD | $53,905 | 266 miles |
The 2025 Lexus RZ is available in three grades. These include the new entry-level model, in addition to the current Premium and Luxury trims.
Inside, the electric SUV has a minimalistic feel with a standard 14″ infotainment with Apple CarPlay and Android Auto support at the center.
You can also opt for the available 10″ head-up display (HUD), Mark Levinson Surround Sound System, and a host of safety features.
The flat platform provides a spacious interior with 37.52″ of rear legroom, nearly as much as the second row of a Ford Explorer (39″).
With the 2025 model arriving at dealerships soon, Lexus is offering closeout prices on 2024 models with up to $18,500 in lease cash discounts. You can use our link to find the best offers on the Lexus RZ at a dealer near you today.
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Environment
‘Political malpractice’ if Trump undoes climate-geared Biden projects, outgoing U.S. energy secretary says
U.S. Secretary of Energy Jennifer Granholm speaks to the media on day five at the UNFCCC COP29 Climate Conference on November 15, 2024 in Baku, Azerbaijan.
Sean Gallup | Getty Images News | Getty Images
A potential decision by Donald Trump to walk back the Biden administration’s climate-geared projects would impact jobs in areas governed by the President-elect’s own party, outgoing U.S. Energy Secretary Jennifer Granholm told CNBC, urging consistency in Washington’s green transition policies.
Referencing the White House’s withdrawal from the Paris Agreement — a 2015 treaty in which nearly 200 governments made non-binding pledges to reduce greenhouse emissions — during Trump’s first mandate, Granholm said the U.S. pressed ahead with projects linked to the green transition that members of Congress wanted to undertake in their districts.
“We are now building all of these projects. We’re building batteries for electric vehicles, we’re building the vehicles, we’re building the offshore wind turbines, we’re building the solar panels. And all of those are factories. And those factories are in districts of members of Congress,” she told CNBC’s Dan Murphy on Friday at the COP29 U.N. climate conference held in Baku, Azerbaijan.
She estimated that 80% of the funding from U.S. President Joe Biden’s legacy bills — the Inflation Reduction Act and the Bipartisan Infrastructure Law — went to U.S. districts represented by Republican leadership.
“It would be political malpractice to undo those opportunities when people are just now getting hired,” she said, stressing benefits to the manufacturing sector and noting that the business community of the world’s largest economy and oil producer now wants a clear course from Washington on its climate policy.
“This isn’t about in [the Paris Agreement], out, shifting back and forth. Let’s have a consistent practice,” she said.
When asked for a response on Granholm’s comments, Karoline Leavitt, a spokeswoman for Trump’s transition team, said the president-elect will “deliver” on the promises he made on the campaign trail.
International focus has now shifted on the shape of the U.S.’ future role in global climate policy, as Trump prepares to take the helm at the White House for a second mandate in January, following a sweeping victory against Democrat candidate Kamala Harris. Trump — who has yet to announce his own pick to lead the U.S. Department of Energy — put hydrocarbons at the front and center of his campaigning agenda, pledging to “end Biden’s delays in federal drilling permits and leases that are needed to unleash American oil and natural gas production.”
The U.S. Energy Information Administration (EIA) in March said that the country already “produced more crude oil than any nation at any time” for the past six years to 2023, averaging a crude oil and condensate production of 12.9 million barrels per day that year — breaking the previous U.S. and global record of 12.3 million barrels per day recorded in 2019, during Trump’s first mandate.
Yet Granholm on Friday stressed that the clean transition is also “unleashed” and will take place regardless of who is leading the White House — and that ignoring climate change risks sacrificing Washington’s position as a frontrunner in the blooming decarbonization industry.
“Why would we take a second, a backseat to an economic competitor like China?” she asked. “They have an economic strategy, they want to be number one. So if we get out of the game, we’re just going to cede that territory all over again. It’s bad strategy for the United States and for workers and for communities across the country.”
As the world braces for the possibility of a second U.S. exit from the Paris Agreement, some climate activists note that the green transition has now gained a different global momentum than during Trump’s first turn at the White House:
“There is no denying that another Trump presidency will stall national efforts to tackle the climate crisis and protect the environment, but most U.S. state, local, and private sector leaders are committed to charging ahead,” Dan Lashof, U.S. director of the World Resources Institute, said in a Nov. 6 statement.
“Donald Trump heading back to the White House won’t be a death knell to the clean energy transition that has rapidly picked up pace these last four years.”
Granholm also identified potential support in Trump’s current entourage, which this week welcomed business tycoon Elon Musk as the president-elect’s choice to head a new Department of Government Efficiency, alongside conservative activist Vivek Ramaswamy:
“His right-hand man, Elon Musk, is somebody who has been strongly in favor of products that … address climate change. Obviously, he’s the founder of Tesla,” Granholm pointed out.
Musk’s environmental stance has come under question over the years, shifting from telling Rolling Stone magazine that “climate change is the biggest threat that humanity faces this century, except for AI” and backing carbon taxes to holding that the world needs hydrocarbon supplies as a bridge to renewable energy.
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