Stellantis Points Blame at California for Layoff Announcement

by Chris Teague

Published: December 8th, 2023

stellantis points blame at california for layoff announcement

When all else fails, blame the government. Stellantis, whose brands include Jeep, Dodge, Chrysler, and Fiat, recently announced layoffs that it blamed on the selective application of California Air Resource Board (CARB) rules. The move could impact thousands of jobs at the company’s Jeep factories in Detroit and Ohio, where it builds the Grand Cherokee, Wrangler, and Gladiator.

The announcement comes after a long drama between the automaker and the state of California. The company decided to limit allocations of its electrified vehicles to states complying with CARB regulations, which meant that non-CARB states got few if any, hybrids from the automaker. Stellantis’ issue is that the state worked with BMW, Ford, Honda, and Volkswagen in 2020 to agree to a different playbook.

That agreement judges emissions compliance across all 50 states, not just those complying with CARB standards. Stellantis believes its absence from that agreement puts it at a significant disadvantage, but it didn’t get left out unknowingly. The automaker applied to join the group but was denied over what it said was retaliation for criticizing CARB’s authority to create emissions rules. Stellantis has filed a complaint with the state over what it called an “underground regulatory scheme.”

We can debate whether or not California overstepped, but it doesn’t change the fact that Stellantis has been slower to move on EVs than other automakers despite the success of Jeep’s 4xe vehicles. The layoffs could also just as easily be related to losses from the recent UAW strikes, as other automakers – some included in the CARB agreement – have announced layoffs.

[Image: Stellantis/Jeep]

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Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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2 of 55 comments

NJRide on Dec 11, 2023

Stellantis deathwatch, down to 8.5% market share in US in November. That is lower than after both bankruptcies of Chrysler.

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Carson D on Dec 13, 2023

There are so many cheerleaders here for authoritarians who apply laws to parties based on the acquiescence that those parties exhibit. They'll come for you soon enough.

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