Stellantis Prepares to Lay Off Around 2,450 Workers at Michigan Ram Truck Plant

Sluggish N.A. Sales Trigger Cost-Cuts

Warren, Michigan is set to see significant layoffs this year as Stellantis plans to reduce its workforce at the local Ram truck plant by up to 2,450. These measures are a response to the trans-Atlantic automaker’s dwindling sales in North America and the firm’s overall need to trim costs.

Stellantis Sets Layoff Timeline

Stellantis revealed its self-imposed deadline Friday, stating that layoffs will be implemented as early as October 8. The implications mean that overall production at the Warren Ram truck plant will be halved, with a shift from two to one.

Cutbacks Follow Substantial Profit Drop

The move follows a concerning plunge in profits. By the end of the first half of 2024, the company had seen profits decrease by almost 50% to 5.6 billion euros (equivalent to approximately $6 billion).

Stellantis Responds to Struggling Profits

While discussing the tough times his company was experiencing on an earnings report call, Stellantis’s chief executive, Carlos Tavares, described the disappointing results as humbling. He also vowed to rectify operational issues and wrestle control of the situation against current adversity.

Transition to Newer Model Influences Layoffs

The massive layoffs are not unrelated to the introduction of a new Ram pickup model, whose production has just kicked off at the Sterling Heights plant in Michigan. However, the older version will still continue its run at the Warren plant albeit with significantly reduced shifts.

Impacted Workers Might be Less Than Predicted

Stellantis was quick to add that the actual number of affected workers might not reach the reported 2,450 mark submitted to the state of Michigan. It based this projection on several variables, including available opportunities at other plants, retirements, and standard attrition.