Stellantis to Lay Off 2,450 Factory Workers as Ram Production Ends

Chrysler-parent Stellantis has announced it will lay off up to 2,450 factory workers from its Warren Truck Assembly Plant, located just outside Detroit, as the automaker winds down production of the Ram 1500 Classic truck.

The layoffs will take effect as early as October 8, 2024, as the plant transitions from a two-shift to a one-shift operating pattern in general assembly.

Shift in Production Focus:

With the conclusion of the Ram 1500 Classic production later this year, Stellantis is redirecting its focus to the Ram 1500 Tradesman truck, which is manufactured at its Sterling Heights Assembly facility.

A company spokeswoman highlighted the introduction of the new 2025 Ram 1500 Tradesman, emphasizing its enhanced value and content. The upgraded electrical architecture of the Tradesman model is designed to incorporate new technologies that benefit commercial fleets, offering better tracking and improved safety systems.

Impact on Workers:

The Warren Truck Assembly Plant currently employs approximately 3,700 workers, who are represented by the United Auto Workers (UAW) union.

Stellantis confirmed that those affected by the layoffs would receive 52 weeks of supplemental unemployment benefits, 52 weeks of transition assistance, and two years of healthcare coverage.

UAW Labor Agreements and Cost-Cutting Measures:

These layoffs come after the UAW negotiated new labor agreements with Stellantis last fall following a historic six-week walkout. As part of ongoing cost-cutting measures, Stellantis recently announced a new round of voluntary buyouts for its U.S. salaried workers, aligned with CEO Carlos Tavares’s strategy to optimize American operations.

During Stellantis’s Investor Day in June, Tavares pointed out weaknesses in at least two of the company’s U.S. plants, though he did not specify which ones. The layoffs and cost-cutting measures are part of the broader effort to address these challenges.