BREAKING: FCA Sterling Heights Shift Cut Will See 1,420 Laid Off Indefinitely

Steph Willems
by Steph Willems

The Sterling Heights, Michigan facility that manufactures the Chrysler 200 will have its output halved this summer, with about 1,420 workers laid off indefinitely as a result, reports the Detroit News.

Both production lines of the midsize sedan were idled for nine weeks earlier this year to compensate for an inventory glut and low demand. Now, only one line will stay open, employing about 1,900 workers.

FCA informed United Auto Workers representatives about the layoffs this afternoon, as well as city and state officials.

The automaker stated that the cuts were needed to “better align production with demand.”

Some of those layoffs will be at a stamping plant that supports production at Sterling Heights. Laid off employees will be placed in open full-time positions at other plants, based on seniority, the company said.

Sales of the Chrysler 200 have imploded, especially since Fiat Chrysler Automobiles chairman Sergio Marchionne announced that the model, as well as the Dodge Dart, would eventually be axed in favor of an outsourced small car.

How long the 200 will continue be produced is unknown, but the continuing poor demand meant something had to give at Sterling Heights. FCA saw sales of the 200 drop 63 percent in the first quarter of 2016 compared to the same period last year.

[Source: Reuters]

Steph Willems
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  • Matt3319 Matt3319 on Apr 06, 2016

    I just unloaded my 2015 200S V6 AWD w/29K on the odo. I loved the car. The V6 was super sweet and the 9 speed was actually a blast once the computer was reflashed and it wasn't clunky anymore. Wholesale trade value sucked!! Car listed for $33,340. I took the 0% and went 72 months with the intention of paying it off in 48 months or so. I traded it in because needed a SUV for work. I had it down to a Touota 4Runner Trail and a Jeep Cherokee Trailhawk V6. It came down to price. The 4Runner listed for $37K and the Trailhawk was $35. The best deal was the Trailhawk by far basically because all the 'Yota dealers acted if the 4Runner was played in 24 carat gold. Tried 4 different 'Yota dealers. I asked for $4200 off. That included holdback too. I've always gotten holdback if the manufacturer has it. Anyways the jeep ended up being $28,100. I liked both and it was a tough choice. The point of my long winded story is that I was averaging about $16500 tradein. One dealer was $18K. But my in town dealer hit me at $21500 and honored the $28100 sale price. I somehow ended up working via email with the stores young Sales Manager. Scott was awesome. They even had to drive 400 for a dealer locate to get exactly what I wanted. Trade value already sucked by February after having the 200 15 months. FCA is making a mistake taking the cash off the hood. Put it back in and move the 200s off the lot. As of last week my 200 was still sitting on the lot priced at $23K. I guess mine listed at $33400 new and if I took the cash I would be $25-26k?? Easy-peasy choice for me. The new one. Sorry for being so long. Still not sure my on my point.

  • Mjz Mjz on Apr 07, 2016

    Instead of FCA dumping untold incentive dollars on it, why don't they ADD extra value and give it a unique selling point over the competition? How about making the Pentastar V6 and/or AWD standard? It would differentiate it from all the others in the midsize class that are now using those damn tiny turbos, and don't even offer a V6, let alone AWD.

    • Npaladin2000 Npaladin2000 on Apr 07, 2016

      Yeah, because a V6 and AWD worked for the Avenger...oh, wait. :)

  • Conslaw Conslaw on Apr 07, 2016

    I'm seeing $27xxx 200s being advertised on the web for $20xxx. And yet, I'm not seeing any advertising of the deals. I think a lot of potential buyers don't know that that you can buy a well-equipped car for the price of a stripper.

  • MRF 95 T-Bird MRF 95 T-Bird on Apr 07, 2016

    I see plenty of new 200's in the NYC metro area but not as many Darts. Apparently dealers are throwing a lot of money on the hood and a lot of the buyers are working and middle-class folks."Honey you might as well go with the 200, its less than a Altima and not that different" Many ads in local papers list the base/LX for under $20k. If I was in the market for a mid-sizer a loaded S or C version with the Pentastar V6 and AWD looks like a nice package. A Camry, Accord or Sonata not available with AWD nor 8 speed auto. You figure when FCA designed these based on the Dart as a mid-sized car to compete with Camry/Accord/Malibu/Fusion etc. they would have stretched the rear a tad with longer doors and more rear hip and leg room. Since Fiat will still be building a mid-sized platform aka. Compact Wide (Viaggio) for other markets it makes no sense to not have a model here in the states.

    • Npaladin2000 Npaladin2000 on Apr 07, 2016

      Actually, the reason is that the production capacity would be better utilized building Cherokees, which use the same exact platform but are selling much better in the US.

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