Stellantis announced plans to lay off up to 2,450 workers at its Warren Truck Assembly Plant in Michigan, with layoffs potentially starting on October 8, 2024. This decision follows the company’s move to end production of the Ram 1500 Classic pickup truck later this year.
The Warren plant employs approximately 3,700 United Auto Workers (UAW)-represented employees, meaning over 60% of its hourly workforce could be affected. However, Stellantis indicated that the actual number of impacted employees might be lower. The plant will transition from a two-shift to a one-shift operation in general assembly but will continue producing the Wagoneer L and Grand Wagoneer models on two shifts.
This move comes as Stellantis faces a growing inventory of unsold vehicles and a 21% decline in Q2 U.S. sales year-over-year, leading to a moderate decrease in its North American market share. The company aims to reduce costs and adjust production to align with market demand.
The Ram 1500 Classic will be replaced by the new Ram 1500 Tradesman, targeting commercial customers. Production of the Tradesman will occur at the Sterling Heights Assembly Plant in Michigan.
In compliance with legal requirements, Stellantis is providing Worker Adjustment and Retraining Notifications to state and local governments, as well as to the UAW. Senior UAW-represented employees will receive 52 weeks of supplemental unemployment benefits and transition assistance, in addition to state unemployment benefits. Displaced workers will also receive two years of healthcare coverage.
This announcement follows temporary layoffs in July, where Stellantis reduced production at the Warren plant and the Toledo South plant in Ohio to adjust vehicle output to market demand. The company temporarily laid off 1,600 employees at the Warren plant during that period.
UAW President Shawn Fain criticized Stellantis CEO Carlos Tavares, stating, “Stellantis CEO Carlos Tavares is a disgrace and an embarrassment to a once-great American company. While GM and Ford report fantastic profits and increased sales, Stellantis is going backwards.” Fain attributed the company’s struggles to mismanagement and a lack of commitment to American autoworkers.
The Warren Truck Assembly Plant, operational since 1938, has a long history of producing various models, including the Dodge Dakota and Ram 1500. The facility received a $1 billion investment in 2020 to upgrade and convert it for the production of the revived Jeep Wagoneer.
Stellantis’s decision to reduce its workforce reflects ongoing challenges in the automotive industry, including shifting market demands and the transition to new vehicle models.