Stellantis to Lay Off 2,450 Workers at Ram Truck Plant Amid Production Cuts

Stellantis Announces Layoffs at Ram Truck Plant

Stellantis, the trans-Atlantic automaker, revealed on Friday its plan to lay off up to 2,450 workers at its pickup truck manufacturing facility located near Detroit later this year. This announcement serves as a stark indication of the challenges the company is currently facing.

The impending layoffs are set to commence as early as October 8 at the Ram truck plant in Warren, Michigan. The company has decided to reduce production from two shifts to just one, a move that underscores ongoing operational adjustments.

Stellantis’s CEO, Carlos Tavares, has emphasized the necessity of cutting costs within the organization, acknowledging that at least one of the North American factories is not meeting performance expectations. The company has been grappling with sluggish sales in North America—its primary profit-generating region—coupled with escalating costs and manufacturing inefficiencies.

In a recent earnings report, Stellantis disclosed that its profits for the first half of 2024 plummeted by nearly half, amounting to 5.6 billion euros (approximately $6 billion). “It is an understatement to say that the first-half 2024 results were disappointing and humbling,” remarked Mr. Tavares during a call with analysts following the earnings report. He further stated, “This is a bump in the road that we are now addressing, and we are committed to overcoming these obstacles to ensure a rebound, as well as tackling the operational challenges we face.”

The layoffs are closely tied to a planned shift towards a new iteration of the Ram pickup, which is currently beginning production at a facility in Sterling Heights, Michigan. Meanwhile, the Warren plant will continue producing an older model of the truck on a single shift. Stellantis has indicated that the actual number of workers impacted may ultimately be lower than the initially reported 2,450.