Automaker Stellantis announced plans to lay off around 2,450 workers at its Warren Truck Assembly Plant near Detroit later this year, as it discontinues production of the Ram 1500 Classic. The layoffs, set to begin as early as October 8, will reduce the plant’s operation from two shifts to one. The impacted workers will receive 52 weeks of supplemental unemployment benefits, two years of healthcare coverage, and 52 weeks of transition assistance.
Stellantis has been cutting production at several plants due to sales challenges and efforts to reduce costs. The company, formed by the merger of Fiat-Chrysler and PSA in 2021, reported a nearly $6 billion drop in profits for the first half of 2024. Stellantis CEO Carlos Tavares described the results as “disappointing and humbling” and emphasized the need to address inventory issues in the U.S. market.
The layoffs have drawn sharp criticism from United Auto Workers (UAW) President Shawn Fain, who called Stellantis CEO Carlos Tavares a “disgrace and an embarrassment” for increasing his own pay while cutting jobs. The layoffs come nearly a year after the UAW led a six-week strike against Stellantis, GM, and Ford, securing a 25% pay raise and better retirement benefits for workers.
Stellantis recently offered a new round of voluntary buyouts to U.S. workers as part of its ongoing cost-cutting measures. During the company’s Investor Day in June, Tavares highlighted weaknesses in at least two U.S. factories, though he did not specify which ones.
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