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Iconic American automaker lays off thousands of workers in the Midwest as it ditches classic truck
Stellantis will lay off up to 2,450 US factory workers later it this year as it discontinues production of its Ram 'Classic' pickup truck.
The Chrysler parent company said the layoffs from the Warren Truck assembly plant outside Detroit, Michigan, will start as soon as October.
Production of the Ram 1500 Classic will wind down later this year, and the company will focus on a new generation of the Ram 1500 which was introduced in 2018 and is made at a nearby plant.
'With the introduction of the new Ram 1500, production of the Ram 1500 Classic at the Warren [Michigan] Truck Assembly Plant will come to an end later this year,' the company told CNBC.
Stellantis has not announced a vehicle to replace the low-cost pickup, which is often sold to entry-level buyers and was introduced in 2008.
Production of the Ram 1500 Classic will wind down later this year, the company said
The number of layoffs at the plant, which currently employs around 3,700 people, may end up being lower than the announced numbers.
Some workers may be given other positions or jobs at other plants. The company owns household names including Chrysler, Jeep, Dodge, Fiat and Peugeot.
Production of the Jeep Wagoneer at the same facility will remain, the company said.
It is the latest round of layoffs at Stellantis, which has stopped production at several plants amid cost-cutting measures.
There are around 3,700 workers at the plant who are represented by the United Auto Workers (UAW) union.
Union members who are laid off will receive 52 weeks of supplemental unemployment benefits paid by the company, and 52 weeks of transition assistance, CNN reported.
They will also receive two years of healthcare coverage.
After a historic six-week walkout last year, the UAW forged new labor deals with Stellantis.
CEO Carlos Tavares has been trying to cut costs since the company was formed through a merger between Fiat Chrysler and French firm PSA Groupe in January 2021.
His 'Dare Forward 2030' plan aims to increase profits and double revenue to $325 billion by 2030.
Stellantis has not announced a vehicle to replace the low-cost pickup, which is often sold to entry-level buyers and was introduced in 2008
Some workers may be given other positions or jobs at other plants (Pictured: An assembly worker at the Mack Plant in Detroit)
CEO Carlos Tavares has been trying to cut costs since the company was formed through a merger between Fiat Chrysler and French firm PSA Groupe in January 2021
President Joe Biden supported striking UAW members at a picket in Michigan last year
Last week, the company offered a new round of voluntary buyouts to US workers in a bid to decrease headcount. It said that if not enough employees took the buyout offer, then terminations would have to follow.
Last month, the automaker reported a steep drop in profits for the first half of the year amid weak US sales.
It reported a profit of $6.07 billion - down 48 percent from the same period in 2023.