Stellantis will lay off 2,450 workers at its US factory later this year as it discontinues production of its Ram ‘Classic’ pickup truck.
Chrysler’s parent company said layoffs at its Warren Truck Assembly Plant outside Detroit, Michigan, will begin in October.
Production of the Ram 1500 Classic will end later this year, and the company will focus on a new generation of the Ram 1500 that was introduced in 2018 and is built at a nearby plant.
“With the introduction of the new Ram 1500, production of the Ram 1500 Classic at the Warren Truck Assembly Plant in Michigan will end later this year,” the company said. CNBC.
Stellantis has not announced a replacement for the low-cost SUV, which is typically sold 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 around 3,700 people, could end up being lower than the announced figures.
Some workers may be assigned to other positions or jobs at other plants. The company owns well-known brands such as Chrysler, Jeep, Dodge, Fiat and Peugeot.
Production of the Jeep Wagoneer will remain at the same facility, the company said.
It is the latest round of layoffs at Stellantis, which has halted production at several plants amid cost-cutting measures.
The plant employs around 3,700 workers represented by the United Auto Workers (UAW) union.
Union members who are laid off will receive 52 weeks of company-paid supplemental unemployment benefits and 52 weeks of transitional assistance. CNN reported.
They will also receive two years of health coverage.
Following 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 through a merger between Fiat Chrysler and French firm PSA Groupe in January 2021.
Its ‘Dare Forward 2030’ plan aims to increase profits and double revenue to $325 billion by 2030.
Stellantis has not announced a replacement for the low-cost SUV, which is typically sold to entry-level buyers and was introduced in 2008.
Some workers may be given 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 through a merger between Fiat Chrysler and French firm PSA Groupe in January 2021.
President Joe Biden supported striking UAW members on a picket line in Michigan last year
Last week, the company offered a new round of voluntary severance pay to American workers in an attempt to reduce the workforce. It said that if not enough employees accepted the offer, layoffs would be necessary.
Last month, the automaker reported a sharp drop in profits for the first half of the year amid weak sales in the United States.
It reported a profit of $6.07 billion, down 48 percent from the same period in 2023.
