Up to 2,450 auto workers at Stellantis NV’s truck assembly plant in Warren could be laid off indefinitely in early October as the plant’s main assembly line switches from two-shift operations to one-shift operations with the end of production of the Ram 1500 Classic pickup truck, the automaker said Friday.
Stellantis filed a Notice of Worker Adjustment and Retraining with the state, local government and the United Auto Workers union. The layoffs, which are likely to be smaller than the number mentioned in the WARN letter, are set to begin as early as Oct. 8 at the plant, which employs about 3,900 people, including about 3,700 workers represented by the UAW. The plant will continue to produce Jeep Wagoneer and Grand Wagoneer SUVs.
Stellantis is rolling out a redesigned version of the Ram 1500 truck for the 2025 model year at its Sterling Heights assembly plant. When the fifth generation of the pickup was unveiled for 2019, the company announced it would continue building the previous generation as a “classic” for budget-conscious buyers and extended production longer than expected.
“The Ram 1500 Classic is a great entry-level pickup for Ram, and the Tradesman model has represented the needs of commercial vehicle customers well for years,” the company said in a statement sent by spokeswoman Jodi Tinson. “We introduced the new 2025 Ram 1500 Tradesman with incredible value and content.”
Long-serving employees who are laid off permanently receive 52 weeks of additional unemployment benefits from the company, 52 weeks of transitional assistance and two years of health insurance. These benefits are in addition to state unemployment benefits.
Other operations outside of main assembly at the plant will continue to operate in two shifts to support Wagoneer production. Stellantis sold nearly 30,000 Wagoneers in the first half, up 119% from a year ago, and nearly 7,600 Grand Wagoneers, up 43%. The automaker has earmarked $400 million for the plant in its $19 billion capital commitments in last year’s record contract with the UAW, which expires in 2028, to revamp it during cycle time, provide extended-range models and all-electric versions of the full-size SUVs.
The Ram 1500 Classic starts at $38,705, according to Stellantis’ website. The 25′ Ram 1500 starts at $39,420.
Stellantis highlighted the vehicle’s Hurricane Straight Six Turbo engine, which delivers improved fuel efficiency to reduce operating costs, an improved electrical architecture for technologies that support commercial fleet tracking and safety systems such as Forward Collision Warning Plus and Adaptive Cruise Control, and a platform that offers electrification opportunities with the all-electric Ram 1500 REV and generator-assisted electric Ramcharger, which are scheduled to launch before the end of the year and early next year respectively. These options would not have been available otherwise, according to the company, to enable future compliance with fuel economy and emissions regulations.
Each auto assembly job also has a large multiplier effect on jobs in communities, from auto suppliers to bars and restaurants in the city. Bridgewater Interiors also filed a WARN notice in late July, announcing that it would lay off 63 workers at a Detroit plant around Sept. 30. Tony Richards, president of UAW Local 600, said those layoffs were related to the job cuts at Warren.
If the plant shuts down, the Motor City Sports Bar & Grill across the street from the Stellantis plant will see a 60% drop in sales, said owner Maria Nuculaj. The layoffs are more bad news for business after ups and downs in production at the plant in recent months and the higher cost of living forced customers to forgo luxury items.
“This is hurting all businesses,” said Nuculaj. “There is a domino effect. Everyone will feel it. A lot has changed recently, and not in a good direction. At lunchtime we had one customer here, whereas before we had a whole counter full of people wanting to eat lunch. And now there is no one there.”
She said less business means she has had to make layoffs herself and cover shifts. It all reflects the state of the economy, she said, and influences her attitude toward the presidential election in November.
“Free trade has to change,” said Nuculaj. “The jobs have to stay here. The people who build cars can’t afford them because they are outsourced to Mexico.”
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