By David Sachs

Stellantis will cut jobs at two Jeep plants in the U.S. to save costs, following a trend of layoffs across the auto industry.

The carmaker said Friday that the layoffs come in part due to emissions rules in California, and will take place at assembly plants in Detroit and Toledo, Ohio, as early as Feb. 5. Combined, the plants employ over 10,000 workers.

Stellantis said California emissions regulations will hurt sales and thus drive cost-cutting measures. Earlier this year, the Netherlands-based company said it would need to save money after losing 3 billion euros ($3.24 billion) in revenue due to production losses from U.S. strikes.

Other companies in the car industry are also cutting jobs to save on costs as analysts predict slower growth next year stemming from economic uncertainty and stable-to-downward production volumes. Volkswagen Group said Wednesday that it will cut labor costs by 20% as part of a EUR10 billion savings plan. German car-parts suppler Continental said last month that is will cut thousands of jobs as part of its restructuring.

Stellantis's U.S. sales fell 2% in the third quarter compared with the same period last year, with Jeep sales dropping 4%, according to company reports. U.S. group sales are still about 33% below 2018 levels, according to Cox Automotive.

The news of job cuts at Stellantis was first reported by Reuters.

Write to David Sachs at

(END) Dow Jones Newswires

12-08-23 0519ET