MONROE, Mich. — The owner of the Monroe Dodge Chrysler Jeep RAM Superstore says he has had a tough year selling cars. The future may only be more bleak though, as Stellantis announced on Wednesday it will lay off 1,139 from the Toledo Assembly Complex as early as Jan. 5 of next year.
"This is definitely the worst year we've had in a long, long time," Ralph Mahalak Jr said of his southeast Michigan dealership.
He says the staffing cuts could affect his business, but a big reason why sales for Gladiators and Wranglers have slowed is due to interest rates.
"Higher interest rates," Mahalak said. "When I've got six Stellantis stores and let's say $60 million worth of cars, and interest rates double, that's very costly to me."
Stellantis itself has seen a sharp decline in Gladiator sales.
By this time two years ago, Stellantis sold 60,286 Gladiators and 41,528 by this time last year. Sales have decreased even more this year, with just 32,670 Gladiators sold so far.
There's more at play than just economic factors, Mahalak says. He also places blame on the lack of recent information about the automaker's hybrid Gladiator.
"When is the Gladiator hybrid coming out?" he said. "Because there was supposed to be a Gladiator hybrid coming and it just seems like I haven't gotten notification on when it's coming."
United Auto Workers Local 12 President Bruce Baumhower says a hybrid should have been released by now.
"It was supposed to be switched over to a hybrid where it has gas," he said.
To make up for the sales, Mahalak says Stellantis is giving dealerships a reason to sell more.
"They have to sell a bunch of EVs and hybrids in 2025, so they pretty much have a gun to their head to give us the incentives we need so we can push these vehicles out to consumers and let them start enjoying them," Mahalak said.
Incentives include new content standards and lower prices on different models, which Mahalak says will hopefully keep the lights in the plant on.
"We can get these UAW guys and gals back to work, gainfully employed and having fun," he said.