DETROIT — Automaker Stellantis plans to indefinitely lay off as much as 2,450 U.S. factory employees later this yr because it halts production of an older version of its Ram 1500 pickup truck in Michigan.
Since the automaker introduced a brand new generation of the Ram 1500 in 2018, the truck has been used primarily as a low-cost pickup for entry-level and fleet customers. It is produced together with the Jeep Wagoneer and Grand Wagoneer on the Warren Truck Assembly Plant near Detroit.
The current Ram 1500, recently updated for the 2025 model yr, is manufactured at a close-by plant. Operations at that facility will proceed as planned.
“With the introduction of the new Ram 1500, production of the Ram 1500 Classic will begin in Warren [Michigan] The truck assembly plant will close later this year,” the corporate said in an emailed statement.
The discontinuation of production of the Ram 1500 “Classic” isn’t unexpected, but the corporate has not yet announced a substitute model for the truck, causing concern amongst local authorities, employees and the United Auto Workers union that represents the plant.
Share prices of Stellantis, GM and Ford
Ram CEO Chris Feuell told CNBC last week that the “Classic” version of the pickup truck could be phased out by the tip of this yr.
UAW President Shawn Fain was critical of Stellantis' leadership in light of the cuts.
“Stellantis CEO Carlos Tavares is a disgrace and an embarrassment to what was once a great American company,” Fain said in an emailed statement Friday evening. “Meanwhile, Tavares is raising his own pay by 56 percent while laying off thousands of autoworkers. If an autoworker did as miserable a job as Stellantis CEO Carlos Tavares, he would be fired.”
Layoffs are expected to start as early as October. The final variety of everlasting layoffs on the Warren plant, which currently employs about 3,700 hourly employees, could possibly be lower than the announced numbers. Some employees could receive other jobs or positions at other plants.
The layoffs are the most recent measures at Stellantis, which has reduced production at several plants attributable to sales problems and cost-cutting measures.
Tavares has been on a cost-cutting mission for the reason that company was created through a merger between Fiat Chrysler and France's PSA Groupe in January 2021. This is a component of his “Dare Forward 2030” plan to extend profits and double sales to 300 billion euros, or $325 billion, by 2030.
The automaker offered its U.S. employees a big voluntary severance package last week to scale back headcount and costs. Stellantis, which reported disappointing half-year results last month, said if enough employees don’t take part in the severance package, involuntary terminations could result.
image credit : www.cnbc.com