One of the world’s largest automakers has announced plans to wind down production of a popular truck model, resulting in major layoffs at one Detroit company.
Stellantis Layoffs
Thousands of workers at a manufacturing plant in Michigan could be laid off in the coming months, as European automotive manufacturer Stellantis plans to bring the production of the Ram 1500 Classic truck to a close.
Detroit Truck Plant
The truck manufacturing plant, known as the Stellantis Warren Truck Plant, is located on the outskirts of Detroit and currently employs 3,700 union workers.
New Model Incoming
The plant has been producing the Tradesman pick-up truck for years, with the truck being upgraded to a new 2025 model and the previous model phased out.
Moved to Another Michigan Plant
Last week, a Stellantis spokesperson confirmed that the planned production of the 2025 model will be moved to the Sterling Heights Assembly Plant in Sterling Heights, Michigan.
Coming to An End
“With the introduction of the new Ram 1500, production of the Ram 1500 Classic at the Warren [Michigan] Truck Assembly Plant will come to an end later this year,” a statement from company spokesperson Jodi Tinson read.
“From Two-Shift to One-Shift”
“As a result, Stellantis announced today that the plant will move from a two-shift to a one-shift operating pattern in General Assembly,” Tinson continued.
As Many as 2,450 Job Losses
The company warned that as many as 2,450 factory positions could be on the hook. While this is the maximum number given, Tinson confirmed that the number would likely be lower.
Retirement Offers and Bumping Rights
This is because some long-time workers have already been given early retirement offers, and remaining employees may be given seniority bumping rights over those positions.
Transfers Available
Jobs at the Sterling Heights Plant will remain unaffected, and many workers at the Warren Truck Plant will be offered the chance to transfer to other Stellantis facilities where possible.
Starting in October
The first round of layoffs is expected to begin in early October, with affected workers liable to receive 52 weeks of unemployment benefits and job transition assistance, as well as two years of healthcare coverage, according to the company.
Union President Speaks Out
Shawn Fain, the president of the United Automobile Workers union, which represents the Warren Truck Plant workers, slammed the company in a blunt email statement to CNBC.
“A Disgrace and an Embarrassment”
“Stellantis CEO Carlos Tavares is a disgrace and an embarrassment to a once-great American company,” Fain wrote, referencing the leader of the company.
A Heated Response
“Meanwhile, Tavares jacks up his own pay by 56 percent while laying off thousands of autoworkers,” the email continued.
Months After Ratification
The layoffs come just months after the union voted to ratify new labor contracts negotiated with the company alongside Ford and General Motors.
Six Week Strike
Last year, the UAW launched a six-week strike against the ‘Big Three’ automakers over pay and benefit disputes. The union eventually came out on top, with 25% pay increases and retirement benefits.
Production Facility Reopened
It also negotiated to reopen a production facility in Belvidere, Illinois, after the company confirmed it wanted to close the plant and cut 1,350 jobs in 2022.
Formed from 2021 Merger
Stellantis, which was formed in 2021 from the merger between Fiat Chrysler Automobiles (FCA) and the French PSA Group, is based in Hoofddorp, Netherlands. It is one of the world’s four largest automakers, including Toyota, Volkswagen Group, and Hyundai Motor Group.
Plagued by Troubles
The layoff announcement is a harsh reminder of the difficulties the corporation and the automotive manufacturing industry at large have faced in recent years.
$6 Billion Loss
Last month, Tavares reported that the company had lost almost $6 billion in profits in the first half of 2024, calling the results “disappointing and humbling” on an earnings call. For many, this layoff announcement is far from surprising.
Dare Forward 2030
The company has been launching cost-cutting efforts across the board since the 2021 merger as part of a “Dare Forward 2030” initiative to increase profits and double revenue.
Featured Image Credit: Shutterstock / Jonathan Weiss.
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