Stellantis announced that the company would begin an indefinite layoff at its Sterling Heights stamping factory in Michigan from next week.
The world’s fourth-largest automaker did not specify the number of staff to be put off, but stated that the decision was made “in order to operate the plant in a more sustainable manner.”
The union representing the employees of the Stellantis-owned Chrysler Sterling stamping facility warned that the “indefinite layoff will be from the bottom up,” starting as early as June 20.
A company spokesperson said: “Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry,” in a statement to Reuters.”
“As the situation continues to be very fluid, we are making production adjustments as necessary to minimize additional production impact.”
The United Auto Workers (UAW) did not immediately react to a request for information on the number of employees affected by the layoff.
It is reported that the carmaker’s Windsor factory will be closed the week of June 20 due to a lack of parts.
Unifor Local 444, the Canadian autoworkers union that represents Stellantis employees at the Windsor Assembly Plant in Ontario, made the statement on Twitter.
Stellantis halted operations at its major Melfi factory in southern Italy earlier this month, claiming a scarcity of various parts, including semiconductors.
The company warned in April that it did not envisage an improvement in the semiconductor supply chain before next year.
Stellantis’ Sterling Stamping is the world’s largest stamping operation, employing 2,184 people, including around 2,000 hourly workers.