Stellantis NV announced they would start an indefinite redundancy period at their Sterling Heights factory.
The fourth-largest car manufacturer in the world, Stellantis, laid-off workers without providing an exact number; however, it told Reuters that the action was made “in order to operate the plant in a more sustainable manner.”
The United Auto Workers Local 1264, a union that manages the concerns of the Stellantis-owned Chrysler Sterling stamping factory, uploaded a letter saying the “indefinite layoff will be from the bottom up,” beginning June 20.
Media outlets have been contacting UAW for comments on the number of employees that were affected, but they did not issue a response immediately.
Stellantis’ Sterling Stamping, says its website, is the world’s biggest stamping factory, employing 2,184 workers, which involves around 2,000 hourly employees.
In Canada, an auto workers union representing Stellantis workers at Windsor Assembly Plant in Ontario, Unifor Local 444, took to Twitter on Tuesday, stating that the car manufacturer’s factory in Windsor will be closed for the week of June 20 due to the lack of parts.
“Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry,” a company spokesperson told Reuters.
“As the situation continues to be very fluid, we are making production adjustments as necessary to minimize additional production impact.”
The car company has halted operations at its key Melfi plant in southern Italy for a week, pointing to insufficient parts like semiconductors.
In April, Stellantis stated that it expects the semiconductor supply chain problem to lack improvement before next year.