(Bloomberg) -- Stellantis NV said it may eliminate about 3,500 jobs at two Jeep production facilities in the US, offering more details on cuts the automaker has said were necessary because stricter emission standards in several states would slow sales of gas-powered vehicles.
The automaker plans to start eliminating about 1,200 positions in early February at its Jeep assembly complex in Toledo, Ohio, according to a notice posted Friday to a state website. Jodi Tinson, a Stellantis spokeswoman, said the company has also filed a notice with Michigan warning of as many as 2,455 job cuts at a facility in Detroit. However, the totals for both locations are likely to be lower because of the “complexity of our bargaining agreement” with organized labor, she said.
Read more: Stellantis Blames Jeep Job Cuts on California Emissions Rules
Stellantis said earlier this week that it was cutting production at the Detroit location, which makes Jeep Grand Cherokee sport utility vehicles and hybrids, and trimming jobs in Toledo, where it produces the Wrangler SUV and Jeep Gladiator pickup.
Automakers have been pushing back on the Biden administration’s efforts to increase fuel economy and spur faster adoption of electric vehicles. Industry trade groups have said stricter rules would cost them billions in fines, while dealers warn that EV demand is softening. On Wednesday, Stellantis filed a petition against regulators in California, one of the states to enact stricter emissions, arguing its rules put the company at a disadvantage versus competitors.
All three big Detroit automakers are looking to reduce costs after they agreed to contracts with record pay increases following strikes by the United Auto Workers.
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