DETROIT – Fiat Chrysler says it will lay off about 1,300 workers at an assembly plant in Sterling Heights this summer for an indefinite time due to slow sales of midsize cars made at the factory.
The layoffs will begin in July at the Sterling Heights Assembly Plant, which makes the slow-selling Chrysler 200. Sales of the cars were down 61 percent for the first three months of the year. The company sold only 7,500 last month, less than half of what it sold a year ago.
Fiat Chrysler says the plant's second shift will return to work Monday and be on the job through July 5. After that, workers will be laid off indefinitely. They have been on temporary layoff since Feb. 1.
The automaker released this statement on Wednesday:
"In order to better align production with demand at its Sterling Heights Assembly Plant, FCA US notified the State of Michigan, the City of Sterling Heights and the UAW today that it intends to return the plant to a one shift operation, beginning July 5. The Company will place indefinitely laid off employees in open full-time positions as they become available within the Detroit labor market based on seniority."
In a statement, UAW Vice President Norwood Jewell said the automaker's announcement is not unexpected.
"While today's announcement of a shift reduction at Sterling Heights Assembly is unfortunate, it is not unexpected. FCA is not the only company experiencing a slow market for small cars. On a bright note, there is a strong demand for larger-sized vehicles. The company has been planning to increase its capacity to build more trucks and SUVs. I believe that in the long term this move will be a positive one for our members and the company," said Jewell in a statement.