It’s been known for some time that Stellantis is riding rough seas. CEO Carlos Tavares will be replaced at the end of his term in early 2026, profits and sales are down, some brands are struggling, reliability is not optimal and there’s been criticism of the build quality of some models.
In short, changes will be needed within the Stellantis empire. In the meantime, the company will have to maneuver with a tighter budget, and cuts are inevitable.
Sure enough, the company has laid off some 1,100 workers at its Warren, Michigan plant. This comes as the Ram Classic model comes to the end of its production cycle. Incredibly, this is (relatively) good news, because in August, up to 2,450 job losses were anticipated. The plant will continue to manufacture the Wagoneer and Grand Wagoneer SUVs.
The other news is just straight bad: the company is closing a test center. These are necessary for manufacturers to evaluate new models and development, but they are expensive to keep operational. Stellantis has thus decided to shutter its proving grounds in Arizona as a cost-cutting measure.
"With the introduction of the new 2025 Ram 1500 Tradesman, production of the Ram Classic ended at the Warren Truck Assembly Plant on October 4," the company said in a statement. "As a result, indefinite layoffs began October 12 for approximately 1,100 employees, far less than the total number of employees."
These layoffs are the latest in a series of downsizing that has affected employees as part of a global cost-cutting effort.
These decisions did not please the union. On October 18, the UAW (United Auto Workers) released a video showing President Shawn Fain criticizing Stellantis CEO Carlos Tavares and urging workers to authorize a strike against the automaker. The union accuses management of going back on the commitments it made in the labor contract signed last year.
Stellantis is suing the UAW and many local chapters over those strike threats.
As for the Yucca, Arizona proving grounds, the closure will take place at the end of the year. Stellantis intends to sell the 4,000-acre site, which employs 69 workers. The facility, which operates year-round, was purchased from Ford in 2007 for $35 million.
CNBC, which first reported the news, said Stellantis planned to use Toyota's Arizona proving grounds starting next year.
“Stellantis continues to look for opportunities to improve efficiency and optimize its footprint to ensure future competitiveness in today’s rapidly changing global market,” the company said in a statement.