Stellantis Plans to Lay Off Up to 2,450 Workers at Detroit Plant, Sparking Uncertainty for Auto Workers

Automaker Stellantis has announced plans to potentially lay off up to 2,450 union workers at its Warren Truck Plant near Detroit. This plant, which employs around 3,700 union workers, currently makes an older version of the Ram 1500 pickup truck called the Tradesman.

The company plans to move production of the new 2025 Tradesman model to its Sterling Heights Assembly Plant. This shift will lead to a reduction of one shift at the Warren facility, resulting in job cuts. However, according to Stellantis spokesperson Jodi Tinson, the number of layoffs could be lower because of early retirement offers and seniority bumping rights.

Last month, Stellantis reported that sales of the Ram pickup dropped 23% in the second quarter and are down 20% for the year through June. Overall, U.S. sales fell 21% compared to the same period last year.

Tinson mentioned that the layoffs might start as early as October 8. Stellantis has said that union workers who are laid off indefinitely will receive 52 weeks of supplemental unemployment benefits, transition assistance, and two years of healthcare coverage. They may also be eligible for state unemployment benefits.

The layoffs are part of Stellantis’ efforts to improve its North American operations after a significant drop in profits. The company reported a 48% decrease in net profits for the first half of the year, with revenues down 14%.

United Auto Workers President Shawn Fain criticized Stellantis for the decision, stating, “The American taxpayer, workers, and consumers have all invested in Stellantis. It’s time for Stellantis to invest in us.”

Despite the layoffs, Stellantis is highlighting improvements in the new Tradesman model, including a better electrical system for improved tracking and safety features, as well as enhanced fuel efficiency.