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Stellantis, considered one of the Big Three automakers, is planning to lay off a substantial number of workers after deciding to discontinue a popular vehicle trim.
What’s the deal: Stellantis has announced that it will stop producing the Ram 1500 Classic at its Warren Truck Assembly Plant in Warren, Michigan, later this year. This move will significantly impact the plant, reducing operations from two shifts to one. As a result, around 2,450 jobs are expected to be cut, although the final number of affected employees may be lower.
What Stellantis is saying: In a statement, Stelantis spokeswoman Jodi Tinson said, “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. As a result, Stellantis announced today that the plant will move from a two-shift to a one-shift operating pattern in general assembly. Other operations within the plant will remain on two shifts to support Jeep Wagoneer production.”
Union slams Stellantis: UAW President Shawn Fain criticized the move and called the CEO of Stellantis a “disgrace.” He said, “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. Meanwhile, Tavares jacks up his own pay by 56 percent while laying off thousands of autoworkers. If any autoworker did as piss poor of a job as Stellantis CEO Carlos Tavares, they would be fired. The American taxpayer has invested in Stellantis. Workers have invested in Stellantis. Consumers have invested in Stellantis. It’s time for Stellantis to invest in us.”
Digging Deeper: In recent years, Stellantis has seen a decline in US sales, which has heavily impacted its brands like Jeep, Ram, Chrysler, Dodge, and Fiat. In July, the company reported a net profit of $6 billion, nearly 50% less than what it earned during the same period in 2023. In addition, US sales continue to drop, with a 21% decline in the last quarter alone.
