Stellantis to lay off up to 2,450 factory workers as classic Ram production ends
The layoffs will be effective as early as Oct. 8, the company said, as the plant moves from a two-shift to a one-shift operating pattern in general assembly. Production of the Jeep Wagoneer at the same facility will remain on two shifts, the company said.
As production of the Ram 1500 Classic winds down later this year, the company is shifting focus to the Ram 1500 Tradesman truck, produced at its Sterling Heights Assembly facility.
“We introduced the new 2025 Ram 1500 Tradesman with incredible value and content. The upgraded electrical architecture allows new technologies useful to commercial fleets for better tracking and improved safety systems,” a company spokeswoman said.
There are about 3,700 workers at the plant represented by the United Auto Workers union. Union members who are laid off will receive 52 weeks of supplemental unemployment benefits paid by the company, and 52 weeks of transition assistance, Stellantis confirmed. They will also receive two years of healthcare coverage.
The UAW forged new labor deals with Stellantis last fall, after a historic six-week walkout.
Stellantis last week said it was offering a new round of voluntary buyouts to its U.S. salaried workers, the latest in a series of cost-cutting measures CEO Carlos Tavares is implementing at the company’s American operations.
At the company’s Investor Day in June, Tavares cited weaknesses in at least two of its U.S. plants, but declined to name them.
The decision to offer voluntary buyouts to salaried workers is part of CEO Carlos Tavares's broader cost-cutting strategy within Stellantis's American operations. Despite the layoffs and shift changes, the company remains committed to investing in new models such as the Ram 1500 Tradesman, which has a focus on business-friendly features and technologies.
