Out of 3,730 workforce at the plant, 60 percent of hourly workers will be negatively impacted from the layoff.
Automotive Dive, the sister publication of Manufacturing Dive has now reported that Stellantis is looking forward to reducing costs by laying off 2,450 workers at its Warren Truck assembly plant in Michigan. Around 3,730 workforce are employed in the unit, and the layoff implies that the plant’s 60 percent of hour-based workers will be negatively impacted.
A month ago during the investor day event, it’s reported that in Q2, Stellantis sales in the US slumped by 21 percent year over year and its market share in the North American regions is slowly declining. Due to this scenario, the inventory of unsold vehicles is mounting and the decisions to reduce operational costs are taken by the directors.
In fact, the company’s new Ram 1500 Tradesman has replaced the classic Ram 1500, which targeted the USA’s commercial customers. As per Reuters report, the Tradesman will be manufactured in Michigan’s Sterling Heights Assembly Plant. Therefore, the Warren truck plant will be replaced with a one-shift operating pattern. The Warren factory will continue to manufacture Wagoneer L and Grand Wagoneer and the same two-shift pattern will continue to grow the production of these vehicles.
The company’s spokesperson told Automation Dive, “With the introduction of the new Ram 1500, production of the Ram 1500 Classic at the Warren Truck Assembly Plant will come to an end later this year.” Employees, who are represented by the United Auto Workers, will be equipped with 52 weeks of supplemental unemployment benefits by the company, as well as 52 weeks of transition assistance. Additionally, the terminated employees are also liable to receive government benefits too.
In an effort to meet market demand, the company temporarily terminated 1600 employees at the Warren plant. Highlighting the layoffs by the company, UAW’s president Shawn Fain told Automation Dive, “Stellantis CEO Carlos Tavares is a disgrace and an embarrassment to a once-great American company. While GM and Ford report fantastic profits and increased sales, Stellantis is going backwards. We have been clear in private and in public with Stellantis that Tavares’s mismanagement of this company and his lack of commitment to the American autoworker is unacceptable.”
