Stellantis warns it may lay off 2,450 of the 3,700 union members working at a truck plant in Warren.
The layoffs would occur at the Stellantis Warren Truck Plant, which builds an older version of the Ram 1500 pickup called the Tradesman that is sold primarily to commercial customers. The company introduced a new version of the truck in 2018, and a new Tradesman is on the way for the 2025 model year.
According to Stellantis spokeswoman Jodi Tinson, the number of layoffs is likely to be lower because early retirement benefits and seniority advancement rights are already in place.
Stellantis is moving production of the new Tradesman to its Sterling Heights Assembly Plant in Sterling Heights, Michigan. The company will lay off one shift at the Warren plant, where the Jeep Wagoneer SUV is still built.
Tinson said the layoffs could begin as early as Oct. 8. The company said workers who are on indefinite layoff from the union will receive 52 weeks of supplemental unemployment benefits and 52 weeks of transition benefits. That’s in addition to any state unemployment benefits a worker may be eligible for. They will also receive two years of health insurance, the company said.
The company touted the Tradesman’s new electric system, which provides better tracking and safety enhancements such as collision warning and adaptive cruise control. The trucks also have better fuel economy, Stellantis said, which lowers the cost of ownership.
Last month, Stellantis CEO Carlos Tavares said promised to address the company’s problems in North America and elsewhere, after reporting a drop in first-half profits.
US automaker Stellantis reported net profit fell by half in the first six months of the year, mainly due to lower sales and restructuring costs.
The automaker, formed in 2021 from the merger of Fiat Chrysler and PSA Peugeot, reported net profit of 5.6 billion euros ($6 billion) in the period, down 48% from 11 billion euros in the same period last year. Revenue in the period fell 14% to 85 billion euros.
