Stellantis Cuts 1,100 Jobs at Warren Truck Amid Production Changes

Stellantis has indefinitely laid off about 1,100 workers at its Warren Truck Assembly Plant (WTAP) in Michigan following the end of production for the Ram 1500 Classic earlier this month. This job reduction is notably less than the initial estimate of up to 2,450 positions that the automaker had warned might be eliminated. The change marks a significant transition at the plant, now adjusting to decreased production demands.

Possible Layoffs Loom as Jeep® SUV Sales Slow – 

The future remains uncertain for WTAP employees, as further job cuts may be on the horizon. Eric Graham, President of United Auto Workers (UAW) Local 140, which represents workers at the plant, anticipates that another 149 employees could face indefinite layoffs in the coming weeks. Graham attributes these potential cuts to lower-than-expected demand for the Jeep® Wagoneer / Grand Wagoneer models. Both the Wagoneer, Grand Wagoneer, their longer variants, and the Ram 1500 Classic were all produced at WTAP.

“It’s bad and it’s getting worse,” said Graham, highlighting the concerns among union members about the state of the plant. Graham had hoped that some laid-off workers could transition to positions at the Sterling Heights Assembly Plant (SHAP) or the Toledo Assembly Complex. However, those facilities have also experienced workforce reductions recently, making it challenging for displaced WTAP employees to find new roles.

Production Paused Amid Low Demand – 

Adding to the uncertainty, production at WTAP has been temporarily halted, a pause that began two weeks ago and is expected to extend through this week. Graham noted that while this past week’s production halt was scheduled in advance, the continuation of the shutdown underscores low order volumes for the upscale Jeep models. As a result, many workers have been placed on temporary layoff during this time.

Despite these setbacks, Stellantis is investing $97.6 million in Warren. The automaker plans to launch electrified 4xe versions of the Jeep Wagoneer and Grand Wagoneer next year.

Shifting Strategy as Ram Production Ends – 

The decision to lay off 1,100 workers came after the final Ram 1500 Classic rolled off the line, ending the model’s run at the plant. Stellantis initially projected much larger layoffs in August, anticipating that up to 2,450 positions might be cut. However, the final number was less severe, with the company stating that the layoffs were “far fewer than the total number of employees who received WARN (Worker Adjustment and Retraining Notification) notices.”

Union leaders, including Graham, have pushed Stellantis to use the WTAP facility to manage overflow Ram 1500 (DT) production from the nearby SHAP facility. According to Graham, this could have helped maintain two shifts and more stable employment levels at the plant. Despite these appeals, Stellantis has different plans, reportedly shifting excess fifth-generation Ram 1500 production to their Saltillo Truck Assembly Plant (STAP) in Mexico.

Broader Layoffs Across Stellantis’ U.S. Operations – 

The cuts at Warren are part of a broader trend as Stellantis conducts assessments to streamline its manufacturing operations. The automaker has recently reduced positions at other U.S. facilities, including the Detroit Assembly Complex in Detroit and Toledo, in response to mounting inventories and cooling demand. These measures are part of Stellantis’ efforts to align production with current market realities.

Stellantis’ U.S. sales have taken a hit, falling 17% year-over-year through Q3 2024. The automaker’s stock has similarly faced challenges, with shares down over 40% this year. The production cuts and workforce reductions are part of a broader effort to address these headwinds.