Jeep maker Stellantis, one of the Big Three automakers, plans to lay off about 2,450 workers later this year at its defunct Ram 1500 Classic plant outside Detroit.
“With the introduction of the new Ram 1500, production of the Ram 1500 Classic at the Warren plant will be [Michigan] The truck assembly plant is scheduled to close later this year,” the company said. The company released the statement via email.Shared by NBC.
The job cuts at the Michigan plant will take effect as early as Oct. 8 as the plant transitions from a two-shift to a one-shift system. Ram launched the Ram 1500 in 2018 as a low-cost pickup truck.
company Confirmed by Reuters The plant employs about 3,700 workers, and those who are laid off will receive 52 weeks of company-paid supplemental unemployment benefits and 52 weeks of transitional assistance, as well as two years of health insurance.
Stellantis has cut production at several factories due to sales issues and cost-cutting measures. The company, which was formed in 2021 from the merger of America’s Fiat Chrysler and France’s PSA, reported a nearly $6 billion fall in profits for the first half of 2024.
“To say that our performance in the first half of 2024 was disappointing and disappointing would be an understatement,” Stellantis CEO Carlos Tavares said on July 25. Analyst Conference Call After earnings report.
“The inventory issue in Europe has been resolved, but not yet in the US. I will comment on this later,” Tavares added. “This inventory management is currently our biggest focus in the US market. We are working hard and I am personally working with our North American team to resolve this issue.”
Last week, Stellantis Provided The company’s latest cost-cutting move comes as it launches a new round of voluntary buyouts for its American workers.
At least two U.S. factories were vulnerable, Tavares said at the company’s investor briefing in June, but did not name them.
Sean Fain, president of the United Auto Workers union, condemned the firings. In a statement to NBCHe called Tavares a “disgrace.”
“Stellantis CEO Carlos Tavares is a disgrace and embarrassment to a once great American company,” Fain wrote.
“Tavares fired thousands of autoworkers while giving himself a 56 percent pay raise,” he added. “If any autoworker was as bad at their job as Stellantis CEO Carlos Tavares, they would be fired.”
The layoffs come just under a year after the UAW led a six-week strike against the Big Three automakers, including Stellantis, GM and Ford, demanding better benefits and wages for employees. The union won a 25 percent pay raise, increased retirement benefits and nearly $5 billion in investment in U.S. factories.
The Hill has reached out to Stellantis and the UAW for comment.
