Stellantis began laying off about 1,100 workers in Warren, Mich., after production of the Ram 1500 Classic pickup ended. The automaker also said it’s closing its proving grounds in Arizona to cut costs.
The layoffs at the Warren Truck Assembly Plant have been expected since Stellantis warned in August that as many as 2,450 jobs would be eliminated, but the actual number turned out to be less than half as many. The plant will continue to build the Jeep Wagoneer and Grand Wagoneer.
The Ram Classic, which dates to 2009, is the truck brand’s previous-generation pickup, which remained in the lineup as a lower-priced alternative to the redesigned model that arrived in 2019. The company said the freshened 2025 Ram 1500 Tradesman, built at the nearby Sterling Heights Assembly Plant, will be the brand’s entry-level pickup.
“With the introduction of the new 2025 Ram 1500 Tradesman, production of the Ram Classic came to an end at the Warren (Michigan) Truck Assembly Plant on Oct. 4,” Stellantis said in a statement. “As a result of this action, indefinite layoffs — as announced in August — began on Oct. 12 for approximately 1,100 employees, far fewer than the total number of employees who received [notices from the state].”
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The layoffs are the latest in a string of headcount reductions that have touched hourly and salaried employees amid a global cost-cutting effort.
The UAW on Oct. 18 released a video in which President Shawn Fain criticized Stellantis CEO Carlos Tavares and urged workers to authorize a strike against the automaker, which the union said is backing away from commitments it made in last year’s labor contract. Stellantis is suing the UAW and numerous local chapters over the strike threats.
The video’s release coincided with a one-day general strike by Italian unions to protest Stellantis’ production cuts and the broader impact on metalworkers across Italy.
In another cash-saving move, Stellantis is planning to close its proving grounds in Yucca, Ariz., at the end of the year.
It intends to sell the 4,000-acre site, which has 69 employees. The year-round testing facility, purchased from Ford Motor Co. in 2007 for $35 million, includes an 18-acre vehicle dynamics area and allows for testing in high temperatures and dusty conditions, among other uses.
CNBC, which first reported the news, said Stellantis plans to use Toyota’s proving grounds in Arizona beginning next year.
“Stellantis continues to look for opportunities to improve efficiency and optimize its footprint to ensure future competitiveness in today’s rapidly changing global market,” the company said in a statement. “As agreed to during 2023 UAW negotiations, the company is continuing to market the Arizona Proving Grounds for sale and therefore, will cease use of the facility by the end of the year. The company is working with the UAW to offer proving ground employees special packages or they can choose to follow their work in a transfer of operations. Alternatively, employees could be placed on indefinite layoff which would entitle them to pay and benefits for two years.”
Source: autonews.com
