Stellantis is planning to lay off thousands of workers at its Warren plant as it shifts production to the new 2025 Ram 1500 Tradesman.
Stellantis is set to lay off as many as 2,450 workers at its Warren Truck Assembly Plant outside Detroit, Michigan, The Epoch Times has learned, as the automaker ends production of its Ram 1500 Classic pickup truck, with the move marking the latest significant workforce reduction in the U.S. auto industry this year.
The layoffs, expected to begin as early as Oct. 8, come as Stellantis announced in an Aug. 9 statement that the end of the Ram 1500 Classic production at Warren means the plant’s general assembly operations will be reduced from two shifts to one.
The transition aligns with Stellantis’s shift toward more advanced and electrification-ready models, as the new 2025 Ram 1500 Tradesman will feature upgraded electrical architecture and be prepared for future EV variants like the Ram REV and Ramcharger, the company said.
Stellantis said that other operations at the Warren plant, which employs roughly 3,900 people, including around 170 non-union, will remain on two shifts to support Jeep Wagoneer production.
Indefinitely laid-off unionized seniority employees will receive 52 weeks of company-paid supplemental unemployment benefits, 52 weeks of transition assistance, and two years of healthcare coverage, in addition to any state unemployment benefits they may qualify for, The Epoch Times has learned.
Stellantis expects the number of layoffs to be below 2,450, stating that it will adhere to standard notification protocols, including issuing WARN notices.
The layoffs are the latest in the U.S. automotive sector, as some companies grapple with the financial pressures of transitioning to electric vehicles (EVs) while others seek to streamline operations.
The moves came after Tesla said it was planning to slash more than 10 percent of its global workforce of around 140,000 staff, which means at least 14,000 jobs are on the chopping block.
“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10 percent globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase,” Tesla owner Elon Musk said in an email seen by The Epoch Times.