Stellantis (STLA, Financial) has announced plans to lay off approximately 1,100 workers at its assembly plant in Warren, Michigan, following the discontinuation of the Ram 1500 Classic pickup truck. This move is part of broader cost-cutting efforts by the automaker, which also include closing its Arizona proving ground by the end of the year.
Previously, in August, Stellantis had indicated that up to 2,450 jobs might be cut at the Warren plant. However, the actual number of layoffs is less than half of that estimate. The production of the Ram 1500 Classic ceased on October 4, and the workforce reduction will begin affecting employees starting October 12. Despite these layoffs, the plant will continue producing Jeep Wagoneer and Grand Wagoneer models.
The United Auto Workers (UAW) have expressed criticism towards Stellantis' leadership. UAW President Shawn Fain accused Stellantis CEO Carlos Tavares of not honoring commitments made in last year's labor contract, and urged workers to authorize a strike.
In addition to the layoffs, Stellantis plans to shutter its proving ground in Yucca, Arizona, as part of its cost-saving measures. The facility, which employs 69 people and spans 4,000 acres, will be sold. The company intends to use Toyota's proving ground in Arizona starting next year for vehicle testing under extreme conditions.
According to Stellantis, the company is collaborating with the UAW to support affected proving ground employees. They are given the option to continue working post-transition or accept indefinite layoffs with two years' worth of pay and benefits.
