Stellantis (they own JEEP) Mass Layoffs, Blames California

https://electrek.co/2023/12/08/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."

 

Not a big Stellantis fan but I think I have to side with them on this one. But then, I’m generally against California’s position on most things.

 

Certainly has nothing to do with the soaring prices of their vehicles. Moderately equipped Grand Cherokees and Wranglers are silly expensive these days.

Opinions aside, CARB isn’t responsible for a bad business model that results in bad sales. This is doubly true when Ford is still pumping out V8 Mustangs and Raptor Rs.

 

I don't agree with CA laws / regulations but blaming CA is reach. Same article mentions other OEMs made deals with CA, Stellantis did not.
I don't buy this logic.

 

Personally I'm more inclined to blame their relative ineptitude and product quality here considering how the portfolio has been doing and that the shifting regulatory/market environment has had the writing on the wall for a while.

Chasing the high-end market (kissing six figures for a luxury Jeep crossover??), noncompetitive lower-end/volume sellers. (RIP Renegade, the Kona came out after both the Renegade and Compass and is already on it's second generation) I'm thinking it's like those big-box stores publicly claiming theft is forcing them to close stores to shift blame away from poor business bets.

Edit: Of course since we're all here we clearly appreciate that updates and refreshes don't necessarily make for a better product - but the product has to be solid to begin with.

 

Yup. Crappy product is first thing one would look at.

 

Flawed business models and poor quality yes, but also compounded with high interest rates and inflation.
The latter will start affecting the markets and manufacturing in other sectors soon enough, not just automakers. Very few will survive. In 10 years the only automotive forums will be for one single model of foreign made EV.
I know I'm damn tired of my taxes funding these big corps and banks. Whether its for bailouts, stimulus, wars or EVs, the free ride needs to end or the inflation will suffocate us all. The financial house of cards is teetering...

 

These fanatically excessive environmental laws will continue to damage the economy. This is just a taste.

 

Is Toyota laying off any 4R workers? Is Ford laying off any Bronco workers? A more accurate explanation would be something like "we don't know how to do business planning and this is the best excuse we could think of short notice".

 

inflation has been going down for several months now
https://tradingeconomics.com/united-states/inflation-cpi
people have to realize that prices don't go back after inflation has gone down. Its just the increase in prices is not as high any more.

 

Yup, I agree with this. I want to put the blame on someone for my ineptitude and -- Look at what CA did!!

 

The point is there shouldn't be inflation in the first place. No it never goes back down. Our usd of today is worth 17 cents in mid 70s dollars.

 

Jeep sales are way down, not surprising

 

Blame California. Classic. Couldn’t have anything to do with their stagnant product line and dwindling “affordable” offerings after cutting the Cherokee and Renegade?

Because everyone else is having a great time selling vehicles despite California, Stellantis is the one dragging the industry down.

Almost like going all in selling 90k Grand Wagoneers during a period of stagflation was a bad business move. Morons.

 

Sounds to me like they're just trying to blame someone/anyone so they can cut payroll costs with the new UAW wage increases.

 

Also another very good point, but California!

 

I didn't read in detail but its not affecting all the automakers sounds like a Jeep issue.

 

Well obviously we need someone to regulate all of this is happening correctly

 

Your right, it’s a Jeep thing. We wouldn’t understand.

 

Wonder if the Jeep curse will strike again.

Willys - gone.
Kaiser - gone.
AMC - gone.
Chrysler - gone (basically they were given to Fiat).

It's almost as if owning Jeep ends up propping up companies that are mismanaged into the ground.

 

His predecessors went to prison if I’m not mistaken. Enriching themselves at the expense of those they represent.

 

Every time Jeep gets bought out the Jeep diehards get excited, thinking someone's going to resurrect their beloved brand. It doesn't take long for the new Jeep brand owner to realize they've stuck their noses into a hornet's nest of long standing quality issues.

It takes more than offering a Jeep pickup to offset skyrocketing prices for what used to be an affordable off roader.

 

Lack luster engine choices, high prices and lack of inventory. If they offered a two door Rubicon with a small V8 for a practical price I’d be all over it. Instead they have a 4 banger, a mild hybrid V6 or if you spend a $100k a 400 hp Hemi.

 

I priced out a four door Rubicon with an auto and it came out to $75k before tax and license. Make's the '24 4Runner TRD Off-Road that will be gracing my driveway soon seem like a deal!

 

The 392 has 470hp. The DIT 2.0L has virtually the same output as the NA 3.6L, eTorque or not. 4xe is supposedly good, and the 3.0L Ecodiesel (RIP) was awesome. That said, they're all entirely way too expensive once you start adding options that are standard on other brands (LEDs, safety).

I had a 2018 2DR Rubicon in Mojito and loved it, but it didn't work for us and the kids anymore. There is no way I'd buy one at the current ask, even with a 10% off MSRP that you can find at a lot of dealers when you order.

 

I agree not a fan of Jeep or Stellantis products but California rules stink and I wish they would stop thinking they represent the rest of the country.

Honda Power Equipment stopped making lawn mowers, snow blowers and other small engine equipment due to the California environmental bs regulations and the fines they had to pay. The fines were so heavy Honda decided to just call it quits on some of the best outdoor equipment in the industry.

 

Remember this commercial from 2012 Superbowl? If this does not get you choked up as American regardless of what part of the United States you are from I am not sure if anything will. Some of what is said in this commercial is still true today. Hope you take a minute to watch

2012 Super Bowl Chrysler Commercial, "It's Halftime in America" (youtube.com)

 

I liked how they digitally altered the Wisconsin teachers’ union protest signs in the shot of the capitol building in Madison.

 

F you Stellantis for selling a 2 door Wrangler for as much as almost $70,000.