Fiat Chrysler cuts 1,300 workers at its Michigan plant

Automobile manufacturer Fiat Chrysler Automobiles announced on Wednesday that it was laying off about 1,300 workers indefinitely at its Sterling Heights, Michigan plant that makes the slow-selling midsize Chrysler 200 sedan. The layoffs will be effective 5 July 2016.

Sales of Chrysler 200 in the U.S. were down 63% y/y in the first quarter of 2016, as the company de-emphasized sales of the model which had been often sold to rental agencies.

Previously in January 2016, Fiat Chrysler’s Chief Executive Sergio Marchionne had stated that the company would cease making the midsize sedan as well as the compact Dodge Dart, unless a partner could be found to keep the production going.

Source: Reuters