Stellantis, a leading global automaker, is phasing out production of one commercial pickup model and could slash more than 2,000 jobs at a Michigan factory.
Manufacturing Shifts to Neighboring Plant
Stellantis, the Netherlands-based owner of Jeep, Fiat, Peugeot, and other vehicle brands, currently produces a version of the Ram 1500 pickup aimed at commercial fleets — known as the Ram 1500 Classic — at its Warren Truck Plant in suburban Detroit.
The company, however, decided to move production of an updated commercial pickup model for the 2025 model year — named the Tradesman — to a nearby plant in Sterling Heights, Michigan.
Warren Plant Heading Down to One Shift
As a result, the Warren factory will be reduced from its current two shifts to a single shift, and Stellantis warned that up to 2,450 of the 3,700 union jobs at the plant could be cut.
Layoffs could begin in October. Company officials told the Associated Press that seniority bumping rights, along with early retirement offers at the facility, will likely bring the number of layoffs below that estimate.
The remaining shift at the Warren plant will continue to produce the Jeep Wagoneer sport-utility vehicle.
Upgrades to the New Ram Pickup
Stellantis says the new Tradesman Ram pickup features improved fuel efficiency and new safety features compared to the 1500 Classic, among other improvements.
Announcement Comes After Disappointing Stellantis Earnings Report
The move follows a decline in Stellantis’ earnings in the first half of 2024, which executives attributed to “restructuring costs” and lower sales numbers.
Image Credit: Shutterstock.com / Jonathan Weiss
