“No employees will be placed on indefinite layoff on Jan 5 2025, due to the previously announced shift reduction. Employees are expected to return to work as scheduled after the new year,” a Stellantis spokesperson told AFP.

The decision comes as “Stellantis continues to reassess its strategy in North America,” the spokesperson added.

The automaker had announced the job cuts at the plant in Toledo, Ohio in early November, saying it was part of an effort to “regain its competitive edge” amid struggles with falling sales.

Stellantis, a 14-brand group that includes Chrysler, Peugeot and Fiat, had planned to trim operations at the Toledo South Assembly Plant from two shifts to one.

Another 400 employees were to be transferred to a “third-party service provider.”

Stellantis sales sank in the third quarter, with a 42% drop in North America alone. The group offered promotional deals as US dealerships struggled to reduce their inventories.

But, Stellantis has significantly revised its approach since Tavares’s Dec 1 exit, with the new interim CEO giving guarantees to the French and Italian governments on maintaining its production and investments in both countries.

The French-Italian-American company had 258,000 employees worldwide at the end of 2003.