FiatChrysler to cut 1,300 jobs in US

1 min

New York (AFP)

Fiat Chrysler said Wednesday it plans to cut 1,300 jobs at a factory in Michigan due to weak demand for its Chrysler 200 sedan.

The cutbacks will "better align production with demand" for vehicles built at Fiat Chrysler's factory in Sterling Heights, about 45 miles north of Detroit.

The layoffs, FCA's first significant downsizing since 2009, affect about 41 percent of the workers at the plant and about three percent of FCA's US staff.

Sales of the Chrysler 200, whose main customers are car-rental companies, fell more than 60 percent in the first quarter.

In January, FCA chief executive Sergio Marchionne said the auto giant could halt production of the Chrysler 200 and another smaller model, the Dodge Dart.

Marchionne has emphasized higher output of sport utility vehicles and pickup trucks -- both of which have been especially popular in the US with lower gasoline prices.

Trucks accounted for about 84 percent of FCA's vehicle sales in the United States in March.