Stellantis warns that up to 2,450 of the 3,700 union members at a truck plant in Warren could be laid off.
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.
It is likely that job cuts will be smaller because there are already offers for early retirement and because of length of service entitlements.
Stellantis is moving production of the new Tradesman to its Sterling Heights Assembly Plant in Sterling Heights, Michigan. The company will therefore lay off a shift of workers at the Warren plant, where the Jeep Wagoneer SUV is still built.
Tinson says layoffs could begin as early as Oct. 8. The company said laid-off senior union members will receive 52 weeks of additional unemployment benefits and 52 weeks of transitional assistance for an indefinite period. That’s in addition to any state unemployment benefits an employee may be eligible for. They will also receive two years of health insurance coverage, the company said.
The company praised the new Tradesman’s electrical system, which enables better lane guidance and improved safety, such as forward collision warning and adaptive cruise control. The trucks are also more fuel efficient, Stellantis said, which reduces operating costs.
Last month, Stellantis CEO Carlos Tavares said promised to address the company’s problems in North America and elsewhere after reporting a slump in first-half profits.
The American-European carmaker Stellantis reported that its net profit fell by half in the first six months of the year, mainly due to lower sales and restructuring costs.
The automaker, which was formed in 2021 from the merger of Fiat-Chrysler with 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 fell 14% to 85 billion euros in the period.
