Mobis North America LLC filed a Worker Adjustment and Retraining Notification (WARN) letter with the Ohio Department of Job and Family Services saying it was temporarily laying off 572 employees. Mobis, an on-site supplier for Fiat Chrysler Automobiles NV’s (NYSE:FCAU) Toledo, Ohio assembly complex, said the layoffs will take place in April 2018. Operations will resume sometime after April 1, 2019.
Because Mobis North America is an on-site supplier, it is laying off its workers as the Toledo assembly complex prepares for the production of the “Jeep Wrangler”-based pickup truck. While the shutdown is projected to last for a year, workers will likely be brought back as different phases of plant remodeling are finished.
In November, Fiat Chrysler unveiled a new Wrangler at the Los Angeles Auto Show. That version will replace the older version, which is why production is shutting down and being retooled.
Most of the laid off employees, 369 of the 572, are production assemblers, but it also includes material handlers (55), technicians (38), management (23), supervisors (nine), engineers (five), accountants (three), administrative/office (three), and material coordinators (five).
Workers have known about the upcoming layoffs since 2015.
These are not the only expected layoffs to come as a result of the one-year closure of Fiat Chrysler’s Toledo assembly complex. Bruce Baumhower, president of United Auto Workers Local 12, says he expects KUKA Toledo Production Operations LLC to announce 350 layoffs in the near future. KUKA Toledo Production Operations produces the vehicle body of Jeep Wranglers.
Fiat Chrysler Automobiles has not said if Hyundai Mobis, which provides chassis for the old version of the Wrangler, or Kuka will be involved in the new operations.
“WARN Letter to Ohio Dislocated Workers Unit,” Ohio Department of Job and Family Services, last accessed January 30, 2018.
“Jeep supplier Mobis announces layoffs,” The Blade, January 27, 2018.
“About KTPO,” KUKA Toledo Production Operations, last accessed January 30, 2018.