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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Environment
Podcast: Apple CarPlay in Tesla cars, VW on Superchargers, Toyota electric pickup, and more
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Apple CarPlay possibly coming to Tesla cars, VW getting access to Superchargers, a Toyota electric pickup, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
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After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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US EV sales declined in October following the expiration of the $7,500 federal tax credit on September 30, and the average transaction price (ATP) edged up, according to initial estimates from Kelley Blue Book, a Cox Automotive brand. However, there are still deals to be had.
Kelley Blue Book’s initial estimates show that US EV sales fell to 74,835 in October, down 48.9% from September, which was a record month, and 30.3% year-over-year.
Prices also ticked up. The average transaction price (ATP) for a new EV climbed 1.6% month-over-month to $59,125, which is 2.3% higher than a year ago.
Tesla didn’t escape the downturn, but it held up better than the overall EV market. The company’s ATP fell 1.1% from September to $53,526, and its prices are 5.5% lower than they were in October 2024. Sales of the Model 3 and Model Y both declined month-over-month, and overall Tesla sales decreased by 35.3% from September and 23.6% year-over-year, which are smaller declines compared to the broader EV segment.
Cox Automotive senior analyst Stephanie Valdez Streaty said the shift wasn’t surprising:
We expected this shift in the electric vehicle market. With the IRA-backed sales incentives gone, lower-cost EV volume was hit hard, pushing the mix toward more luxury and driving October’s EV ATP to a 2025 high of $59,125 – now $9,359 above the industry average. Affordability has always been the core challenge with EV sales, and this reset only underscores how critical it is to bring more attainable EV options to market.
Electrek’s Take
September was a record-breaking month for both EV deals and sales. Dealers were offering all sorts of sweet incentives to stack with the federal tax credit to move cars off the lot. October’s sales drop was entirely anticipated, like a pounding headache after a big blowout party.
We didn’t know what the post-federal tax credit EV market would look like. As Valdez Streaty rightly states, EVs do have a higher ATP than the industry average. But it turns out that, so far, it’s not all doom and gloom, and the federal tax credit isn’t the only incentive in town.
Every month, I compile great EV lease deals, and for the last few months, some EVs’ monthly lease payments have been cheaper than before the federal tax credit expired. Many states are still offering rebates on EV purchases, and dealers still have really good deals. While cheaper models would definitely be welcome, there are good deals available right now.
And let’s not forget the fact that EVs are much cheaper to drive than gas cars, with or without that tax credit.
Read more: From $189 a month: 5 of the best EV lease deals in November [Updated]
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The Oshkosh-built Striker Volterra Electric Aircraft Rescue and Fire Fighter (ARFF) packs advanced battery technology to deliver ultra-fast emergency response performance no matter how long it needs to be in action — and Dallas Fort Worth International Airport just put six of the awesome 6×6 machines to work!
Oshkosh has been manufacturing ARFF vehicles since it first launched the MB-5 for use by the US Navy back in 1968, and they’ve been pushing the envelope of disaster response performance ever since. The company’s latest ARFF, the Striker Volterra Electric shown here, features a slanted body with front bumper designed for maneuvering through the ditches and rough terrain they might encounter on a damaged runway. It’s also big — but it’s big for a purpose. Because ARFF vehicles don’t have to navigate the confines of city streets, they can be built bigger, carry more water, more rescue equipment, and more personnel than conventional fire trucks.
As the newest members of the DFW Fire-Rescue fleet, these Striker Volterra Electric ARFF vehicles represent a significant step in DFW’s broader plan to replace its legacy fleet with a modern, electrified response system, while also making DFW the largest Striker Volterra Electric ARFF fleet operator in the US.
“Enhancing performance by reducing response times is the key driver of transitioning to these new vehicles,” said Daniel White, DFW Fire-Rescue Chief. “The Striker Volterra vehicles are faster and more agile than our current fleet. Because they are also safe for our firefighters and conscious for the environment, this investment represents a rare win-win-win, delivering operational benefits while ensuring the safety of our responders and the community we serve.”
The Striker Volterra Electric 6×6 ARFF uses a proprietary Oshkosh electric powertrain and an electro-mechanical infinitely variable transmission (read: CVT) paired to an integrated diesel generator. The setup enables zero-emission electric operation during normal station entry, standby, and low-speed tasks, eliminating firefighter exposure to their ARFF’s diesel exhaust 99% of the time. For sustained high-power demands during active fire suppression, the system seamlessly draws from both the battery and generator, ensuring uninterrupted pumping power and performance without operator intervention.
“Our commitment goes far beyond delivering a vehicle,” said Travis Ownby, sales specialist with Siddons-Martin Emergency Group. “It’s about helping departments like DFW Fire-Rescue lead the way in operational excellence and sustainability. We’re proud to support their mission with the Striker Volterra Electric ARFF vehicles.”
The addition of the Striker Volterra Electric ARFF vehicles also supports DFW’s transition to fluorine-free firefighting foam in line with FAA guidance and the industry’s move away from PFAS-based agents for a more environmentally responsible response capability across the airport.
Electrek’s Take
With the relatively short distances driven and extreme loads involved, airports present a nearly ideal use case for battery-electric vehicles in general, and their immediate off-the-line torque, improved efficiency, and ability to operate much more quietly than diesels (facilitating emergency crews’ communications) could make all the difference in an emergency situation where lives are quite literally on the line.
Plus, as demand for on-road fossil fuels drops, airports and airlines (historically responsible for about 4% Earth’s global warming) are becoming a bigger and bigger slice of a rapidly shrinking pie when it comes to fossil fuel emissions. Or, as OshKosk put it, “As airports continue to prioritize sustainability and operational efficiency, the Striker Volterra electric ARFF stands out as a forward-thinking solution that meets today’s demands while preparing for tomorrow’s challenges.”
It’s a bit pitchy, but I couldn’t agree more.
SOURCE | IMAGES: Oshkosh.
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