DETROIT — Stellantis is eliminating the third production shift at a Michigan plant that builds the Jeep Wagoneer and previous-generation Ram pickup.
The automaker said no permanent employees would be laid off as a result of the cutback, which it called an effort to “improve production efficiency” amid the ongoing industrywide microchip shortage.
Warren Truck Assembly has more than 5,500 employees and began running a three-shift schedule in January. It builds the Wagoneer and Grand Wagoneer, nameplates that rejoined the Jeep lineup in 2021, as well as the Ram Classic, which is scheduled to remain in production through next year.
Supplemental workers will see their hours cut, but “there are no layoffs associated with this action,” a company spokesperson said.
“All full-time third-shift seniority employees will be redeployed to the other shifts,” the company said in a statement. Stellantis said it notified the Michigan Department of Labor and the UAW about the cutback on Wednesday. The Detroit News reported late Wednesday that the third shift was being eliminated.
The plant is adding the extended-length Wagoneer L and Grand Wagoneer L variants that are 12 inches longer than the standard models. They were scheduled to reach dealerships by year-end.
Jeep sold 30,276 Wagoneers and 9,454 Grand Wagoneers in the U.S. this year through September. That compares to year-to-date sales of 198,762 for General Motors’ full-size SUVs and a combined total of 50,757 for the Ford Expedition and Lincoln Navigator.