Iconic American automaker lays off thousands of workers in the Midwest as it ditches classic truck
Stellantis will lay off 2,450 U.S. factory workers later this year as it halts production of the Ram ‘Classic’ pickup truck.
Chrysler’s parent company said layoffs at its Warren Truck assembly plant outside Detroit, Michigan, will begin as early as October.
Production of the Ram 1500 Classic will end later this year, and the company is now focusing on a new generation of the Ram 1500, which was introduced in 2018 and is made at a nearby plant.
‘With the introduction of the new Ram 1500, production of the Ram 1500 Classic started at Warren [Michigan] The truck assembly plant will close later this year, the company said. CNBC.
Stellantis has yet to announce a vehicle to replace its budget pickup truck, which is often marketed to entry-level buyers and was introduced in 2008.
Production of the Ram 1500 Classic will end later this year, the company said
The number of layoffs at the plant, which currently employs about 3,700 people, may be lower than announced numbers.
Some employees may be given other positions or jobs at other factories. The company owns household names such as Chrysler, Jeep, Dodge, Fiat and Peugeot.
The company said production of the Jeep Wagoneer will continue at the same factory.
It is the latest round of layoffs at Stellantis, which has halted production at several factories as part of cost-cutting measures.
The plant employs approximately 3,700 workers, who are represented by the United Auto Workers (UAW) union.
Union members who are laid off will receive 52 weeks of additional unemployment benefits paid by the company and 52 weeks of transition benefits. CNN reported.
They also receive health insurance for two years.
After a historic six-week strike last year, the UAW reached new labor agreements with Stellantis.
CEO Carlos Tavares has been trying to cut costs since the company was formed in January 2021 from a merger between Fiat Chrysler and French company PSA Groupe.
His plan, “Dare Forward 2030,” aims to increase profits and double revenue to $325 billion by 2030.
Stellantis has yet to announce a vehicle to replace its budget pickup truck, which is often sold to entry-level buyers and was introduced in 2008
Some workers may be moved to other positions or jobs at other plants (pictured: an assembly worker at the Mack plant in Detroit)
CEO Carlos Tavares has been trying to cut costs since the company was formed in January 2021 through a merger between Fiat Chrysler and French company PSA Groupe
President Joe Biden supported striking UAW members at a picket in Michigan last year
Last week, the company offered a new round of voluntary buyouts to U.S. workers in an effort to reduce its workforce, saying that if not enough workers accepted the buyout offer, layoffs would follow.
Last month, the automaker reported a sharp drop in first-half profit due to weak US sales.
The company reported profit of $6.07 billion, down 48 percent from the same period in 2023.