Stellantis to Cut Up to 2,450 Workers, End Production of Old Ram 1500 Model

Key Takeaways

• Stellantis is ending production of an older Ram 1500 model, which could result in nearly 2,500 layoffs.
• The 1500 “Classic” is produced at a plant in Warren, Michigan.
• The automaker has not announced a replacement vehicle, which has raised alarm bells at the United Auto Workers union.

Stellantis N.V. (STLA) is ending production of its Ram 1500 Classic truck and laying off as many as 2,450 factory workers in the process. 

The vehicle is produced alongside the Jeep Wagoneer and Grand Wagoneer at a plant in Warren, Michigan. A newer version of the 1500 truck was introduced in 2018 and is produced at another plant in the area. 

“With the introduction of the new Ram 1500, production of the Ram 1500 Classic at the Warren (Michigan) Truck Assembly Plant will come to an end later this year,” a Stellantis spokesperson said. “…Other operations within the plant will remain on two shifts to support Jeep Wagoneer production.”

The layoffs are expected as soon as October. 

‘Decisive Actions’

Stellantis hasn’t announced a replacement vehicle for the 1500 Classic, which is a red flag for the United Auto Workers union, which won new labor deals with the big three Detroit automakers following a multi-week strike last year. 

The decision comes less than a month after the owner of the Chrysler and Jeep brands said it would take “decisive actions to address operational challenges” after it reported a 48% year-over-year slump in first-half net profit.

Shares of Stellantis fell 1.4% on Friday to a new 52-week low.

 

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