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Jeep maker blames California for job cuts in their Midwest plants

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Jeep maker blames California for job cuts in their Midwest plants


By Keith Laing and Gabrielle Coppola | Bloomberg

Stellantis NV is eliminating a shift at a Jeep plant in Detroit and cutting jobs at its Toledo, Ohio, Jeep assembly complex, a move the company blamed on strict emissions standards adopted by California and more than a dozen other states in 2019.

Stellantis announced Thursday it will temporarily cut a shift at its Mack Avenue plant in Detroit, which makes two- and three-row Jeep Grand Cherokee sport utility vehicles and hybrids, and trim jobs in Toledo, which produces the Wrangler SUV and Jeep Gladiator pickup.

Stellantis said it was cutting Jeep production in anticipation of potentially lower sales of gas-powered vehicles in California and other states. The company filed a petition against California regulators Wednesday arguing the state’s rules put the company at a disadvantage versus competitors.

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The moves come as automakers are pushing back on the Biden administration’s efforts to increase fuel economy and spur faster adoption of electric vehicles. Automobile industry trade groups have said stricter rules would cost them billions in fines, while dealers warn that EV demand is softening.

Stellantis’ predecessor, Fiat Chrysler Automobiles NV, sided with the Trump administration it its fight to take away California’s legal right to set its own emissions standards. That position resulted in it being left out of the less stringent deal the California Air Resources Board, or CARB, struck with four carmakers — Ford Motor Co., Volkswagen AG, Honda Motor Co. and BMW AG.

Layoff Notices

Stellantis said it would file notices Thursday to state and local governments under the federal WARN Act, which requires employers with 100 or more workers give 60 days’ notice of plant closings or mass layoffs. The company declined to specify how many jobs would be affected; the two plants combined employ just over 10,000 people.

Stellantis’s Wednesday petition alleged that California improperly adopted a 2019 deal negotiated by state regulators and four carmakers that allowed those manufacturers to voluntarily increase the average fuel economy of their fleets to about 50 miles per gallon (80 kilometers) by the end of the 2026 model year.

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While Stellantis has lagged behind other automakers in the conversion to EVs, its Jeep Wrangler 4xe hybrid is the fourth best-selling electrified vehicle in California this year through September, and its Chrysler Pacifica hybrid is 13th on the list.

At the same time, all three big Detroit automakers are looking to cuts costs after they agreed to contracts with record pay increases following the United Auto Workers’ strikes this year.

Lys Mendez, communications director for CARB, said the agency expects California’s Office of Administrative Law would recognize the agreements with the carmakers “for the settlements that they are” and dismiss Stellantis’ petition. The UAW did not immediately respond to a request for comment.

Sales Slump

Stellantis is also wrestling with shrinking sales at its prized Jeep brand as high interest rates put its premium SUV out of reach for more consumers.

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Jeep brand sales fell 4% in the third quarter, the ninth consecutive quarterly decline, Stellantis reported in October. Sales were down 9% this year through September. Jeep named a new head of North America and picked a new global brand head last month.

The 2019 emission deal between California and the four carmakers is widely seen as a model for a subsequent Biden administration rule adopted in 2022. That rule now requires carmakers to increase their average fuel economy to about 49 miles per gallon by 2026.

Despite the fact that the national rules will require roughly the same fuel economy as California’s standards, Stellantis says manufacturers in the 2019 deal can meet the standards based on their nationwide sales, while excluded automakers are measured by sales in the states that follow the California rules. This, a company spokesperson said, necessitated the moves announced on Thursday.

More stories like this are available on bloomberg.com

©2023 Bloomberg L.P.

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California

Summer Barbecue Festival Season Has Arrived in Southern California

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Summer Barbecue Festival Season Has Arrived in Southern California


Summer is just around the corner, as is the season to place marinated meats over a fiery grill. Thankfully, two Southern California festivals are taking place to celebrate Los Angeles and Riverside County’s diverse barbecue scenes, starting with the Long Beach Barbecue Festival on May 25 and the Brew n’ Que Festival from May 31 through June 1 in Riverside County.

Axiom Kitchen will set up at the tail end of Shoreline Aquatic Park from 12 p.m. to 9 p.m. to host its second annual event showcasing 25 pitmasters including Big Brian’s Meats, the 38-year-old operator Robert Earl’s BBQ, and the Mexican-Cuban specialist El Guero y La Flaca. In addition to 40 retail vendors, the festival will also feature whiskey tastings, a beer garden, a full bar, and an amateur chili cook-off contest. VIP tickets are still available.

Out in Norco, the Brew n’ Que Festival kicks off with panel chats from the CEO of the Kansas City Barbecue Society, Slap Yo Daddy sauce creator Harry Soo, and Black Smoke author Adrian Miller on day one. On June 1, attendees can try barbecue from local operators, North Carolina’s Bourbon & Blues Barbecue, and Good Googly Goo BBQ from Maryland. They’ve even secured live entertainment. Tickets to the festival range from $20 to $125.

Carmel Coffee craze is an understatement

Time Out LA waited in Carmel Coffee’s hour-plus line to try Silver Lake’s, or, rather, all of Los Angeles’s buzziest cafe, which opened in May. Those brave enough to stand in line were rewarded with drinks like milk teas, matcha lattes, and its popular multi-grain misugaru.

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Another group of SoCal Starbucks workers join the union

Starbucks employees in Santa Clarita voted to join the worker union on May 17. The store at Newhall and Carl Court is the 35th California Starbucks location to join Starbucks Workers United. Over the last three years, Starbucks workers have organized extensively throughout the country amid allegations of anti-union actions from the coffee giant. In Southern California, the chain shuttered six Los Angeles stores in 2022, citing issues related to worker safety. The National Labor Relations Board subsequently filed a complaint against Starbucks, taking action to order the company to reopen multiple LA stores in 2023.

Grand Central Market in 1963

This time capsule of Grand Central Market from Forgotten Madness LA’s Instagram account is a healthy dose of nostalgia for Los Angeles residents and beyond.

New hours and offerings at Xuntos

Santa Monica’s Xuntos is open on Mondays and just launched a happy hour with Pintxos by chef Sandra Cordero. It also has a new bar program where gin and tonics, brandies, and Spanish natural wines are available, including Galician after-dinner drinks called chupitos.

Pescatarians, Burgers 99 wants you

DJ collective All Summa partnered with Badmaash’s Burgers 99 to create their first fish burger called the Ricks. It’s $13 with a wild-caught salmon patty, avocado spread, capers, cheddar, lettuce, and tomatoes on a toasted bun.





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Uber, Lyft-Backed California Labor Law Faces Final Court Test

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Uber, Lyft-Backed California Labor Law Faces Final Court Test


California State Senator Maria Elena Durazo speaks on the steps of Los Angeles City Hall on Oct. 22, 2020 where elected leaders held a conference urging voters to reject Proposition 22 in the then-upcoming election.

FREDERIC J. BROWN/AFP via Getty Images



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California Strawberry Festival raises money for schools and scholarships

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California Strawberry Festival raises money for schools and scholarships


VENTURA, Calif.-The California Strawberry Festival wrapped up a weekend of mouth-watering fun and fundraising at the Ventura County Fairgrounds in Ventura.

The 38th festival serves as fundraiser for school groups and non profits.

Buena High School Music Association raised money by making and selling funnel cakes.

Other school booster clubs sold coffee and snacks.

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The event also raises thousands of dollars for the Dr. Kato Memorial Scholarship Fund that is named after the late festival founder and former mayor of Oxnard.

The money has helped the children of farm workers attend college.

Some of Kato’s relatives came from Long Beach to enjoy the festival.

“It is a dream come true for him, “said his sister Loraine Kato Lieppman, ” This is what he started over 30 years ago, I am just happy to see it his son Dean Kato is in charge of this, and we are just pleased to be able to share it with them.”

Festival goers also enjoyed chocolate covered strawberries , kabobs and funnel cakes.

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Adults enjoyed strawberry margaritas and strawberry beer.

Growers were also on hand selling the area’s number one cash crop by the tray and basket.

“This is a huge strawberry, you can eat it with sour cream, with sugar, dip it in chocolate, with a smoothie ,you can do the best smoothies with the big strawberries,” said Magaly Hernandez of Faria Farms.

Grower Glen Hasegawa of Faria Farms in Oxnard said cross breeding makes them large and sweet.

He said they are not genetically modified.

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“Now they are kind of at their peak flavor,so, it is a good time great time to eat ’em.” said Hasegawa.

He prefers to eat them right out of the tray.

Festivalgoers also enjoyed rides, Steve’s Fun Balloons and the work of caricature artists.

Shoppers also had a chance to buy strawberry inspired arts and crafts.

The festival that began in Kato’s backyard moved to the Channel Islands Harbor in the 1980s and then to Strawberry Meadows at Oxnard College.

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Last year, it moved to the fairgrounds.

Organizers did their best to cut down on traffic jams by offering free shuttles.

For more information about the annual festival visit https://www.catrawberryfestival.org



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