DETROIT (FOX 2) – Stellantis may offer layoffs to nearly 2,500 union members at its Warren plant after the company reported a drop in profits two weeks ago.

According to the Associated Press, Stellantis could lay off up to 2,450 of the 3,700 workers at its Warren auto plant.

The job cuts would take place at the Stellantis Warren Truck Plant, which builds an older version of the Ram 1500 pickup called the Tradesman, sold primarily to tradesmen. The company launched a new version of the truck in 2018, and there’s a new Tradesman coming for the 2025 model year.

Stellantis is moving production of the new Tradesman to its Sterling Heights Assembly Plant in Sterling Heights, Michigan. The company will therefore lay off one shift of workers at the Warren plant, which still builds the Jeep Wagoneer SUV.

A truck is displayed near an entrance to the Stellantis Warren Stamping Plant in Warren, Michigan, U.S., on Sunday, May 5, 2024. About 1,000 members of the United Auto Workers (UAW) will vote on May 6 on whether to authorize a strike at the Warren Stamping Pla

FOX 2 asked Stellantis for comment and confirmed that layoffs are imminent.

“With the introduction of the new Ram 1500, production of the Ram 1500 Classic at the Truck Assembly Plant in Warren, Michigan, will cease later this year. As a result, Stellantis announced today that the General Assembly plant will transition from a two-shift operation to a single-shift operation. Other operations within the plant will continue to operate in two-shift operations to support production of the Jeep Wagoneer.”

Stellantis said around 2,450 jobs could be laid off, but the number would “probably be lower”.

The United Auto Workers union sharply criticizes this move.

“Stellantis CEO Carlos Tavares is a disgrace and an embarrassment to what was once a great American company. While GM and Ford are reporting fantastic profits and increasing sales, Stellantis is going downhill. Meanwhile, Tavares is raising his own pay by 56 percent while laying off thousands of auto workers,” union president Shawn Fain said in a fiery statement. “The American taxpayer has invested in Stellantis. Workers have invested in Stellantis. Consumers have invested in Stellantis. It’s time for Stellantis to invest in us.”

The layoffs will begin as early as October 8.

At the end of July, Stellantis said it would offer employees voluntary severance payments after the company reported a profit decline of around 50% in the first half of the year.

“I think it’s a good business and you adapt your production to the market,” said Alan Amici, president of the Center for Automotive Research. “You’ve decided to go for a new generation of trucks, so you have to look at the older generation to say, ‘Is there a demand for it? And is there a place for it?’ Apparently, for Stellantis, the answer is no.”

According to Amici, the changes come as part of a series of broader adjustments by the Big Three. Automakers have recognized that electric vehicle sales are growing more slowly than expected and are therefore introducing more hybrid vehicles to fill the gap.

“General Motors hasn’t had hybrids on the market so now they’re bringing them to market and we should hear about that soon,” Amici said. “Ford Motor Company has had hybrids and Stellantis has hybrids on the market. So this is another example of a company watching the market, seeing where the demand is and then adjusting their portfolio.”

The Stellantis Warren Truck Assembly Plant on Mound Road covers nearly 87 hectares

This is the second planned wave of layoffs at Stellantis in the Detroit area – after laying off 199 employees at its Sterling Heights plant in April.

This report uses information from the Associated Press.