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 200Â 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.Â FCA saw sales of the 200 drop 63 percent in the first quarter of 2016 compared to the same period last year.