Stellantis, the parent company of Chrysler, has announced plans to lay off as many as 2,450 factory workers at its Warren Truck assembly plant near Detroit.
The layoffs, which will take effect as early as October 8, 2024, result from the company ending production of the Ram 1500 Classic truck. The plant will also shift from a two-shift to a one-shift operation in its general assembly line.
Shift in Production Focus:
As the Ram 1500 Classic production winds down, Stellantis is redirecting its focus to the Ram 1500 Tradesman truck, which is being produced at the Sterling Heights Assembly facility.
The 2025 Ram 1500 Tradesman features upgraded electrical architecture to support new technologies that enhance safety and tracking capabilities, particularly for commercial fleets.
Support for Laid-Off Workers:
Stellantis will significantly support the affected workers, who are represented by the United Auto Workers (UAW) union.
The company has committed to providing 52 weeks of supplemental unemployment benefits, 52 weeks of transition assistance, and two years of healthcare coverage.
These measures are part of the labor deals negotiated between Stellantis and the UAW following last year’s six-week walkout.
Cost-Cutting Measures and Voluntary Buyouts:
In addition to the layoffs, Stellantis has also announced a new round of voluntary buyouts for its U.S. salaried workers as part of ongoing cost-cutting efforts.
CEO Carlos Tavares is implementing these measures. He has previously pointed out weaknesses in at least two of the company’s U.S. plants. However, he did not specify which ones during the company’s Investor Day in June.