MJP –
As it prepares to end manufacture of a legendary truck, a huge American automaker has begun laying off thousands of plant workers.
Stellantis, a prominent American carmaker, intends to lay off some 2,450 employees at its plants in the United States.
With this move, the corporation is preparing to end the manufacture of the “Classic,” an earlier model of the Ram 1500 pickup truck that has been very popular.
While the latest edition of the Ram 1500 was unveiled in 2018, the Classic model served as a more budget-friendly alternative for entry-level consumers and fleet clients.
Presently, the Warren Truck Assembly Plant, situated close to Detroit, is constructing the Classic Ram 1500 in addition to the Jeep Wagoneer and Grand Wagoneer.
Production of the more modern Ram 1500, which underwent revisions for the 2025 model year, will proceed as planned since it is manufactured at a separate site in the vicinity.
Even though Stellantis has said that they will be ceasing manufacture of the Classic Ram 1500 later this year, they have been mum on the subject of a replacement.
Local governments, employees, and the plant’s union, the United Auto Workers, are all worried about the lack of a replacement plan.
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The “Classic” trim level of the Ram pickup will be discontinued by year’s end, according to a CNBC interview with Ram CEO Chris Feuell last week.
Stellantis’s leadership was criticized by UAW President Shawn Fain for the downsizing.
In a letter sent by email on Friday night, Fain stated, “Stellantis CEO Carlos Tavares is a disgrace and an embarrassment to a once-great American company.”
In the meanwhile, Tavares has laid off thousands of autoworkers while increasing his salary by 56%.
Any employee at Stellantis would be let go if they performed as poorly as CEO Carlos Tavares.
As early as October, you might see the first layoffs.
The announced statistics may not reflect the actual number of indefinite layoffs at the Warren factory, which employs approximately 3,700 hourly workers.
Other positions or jobs at different plants may be offered to some employees.
Stellantis has recently reduced output at multiple factories due to sales challenges and cost-cutting efforts, which has led to layoffs.
Since its formation in January 2021 as a result of the combination of Fiat Chrysler and France’s PSA Groupe, Tavares has been actively pursuing cost reduction.
He aims to double revenue to 300 billion euros, or $325 billion, by 2030 and enhance profitability as part of his “Dare Forward 2030” initiative.
Last week, the carmaker made a broad voluntary buyout offer to salaried employees in the United States in an attempt to cut expenses and headcount.
Stellantis warned that involuntary terminations may occur if not enough workers take part in the buyout, following last month’s dismal first-half results.
