Stellantis, a major player in the automotive industry, has announced plans to lay off approximately 2,450 jobs in the United States by the end of the year. This decision is in line with the end of production of the Ram 1500 ‘Classic’ model at its Michigan plant.
Since its debut following the launch of a new Ram 1500 model in 2018, the “Classic” variant has been an affordable option for early buyers and commercial fleets. This vehicle is produced at the Warren Truck Assembly Plant, which also produces models such as the Jeep Wagoneer and Grand Wagoneer, not far from Detroit.
However, while production of the updated 2025 Ram 1500 will continue at a nearby plant, the Warren plant’s “Classic” model end will soon take effect. “The end of Ram 1500 Classic marks a significant shift in our manufacturing operations,” Stellantis said in an email.
Although the Ram 1500 ‘Classic’ was scheduled to be phased out, Stellantis has not yet indicated any plans for a direct replacement model. This uncertainty is raising concerns among the local community, plant workers and the United Auto Workers union, which represents employees at the facility.
The impact of these layoffs is part of a broader Stellantis strategy under CEO Carlos Tavares, who has led cost-cutting initiatives since the merger of Fiat Chrysler and PSA Groupe in January 2021. This strategy, called “Dare Forward 2030,” aims to significantly increase the company’s profitability and double its revenue to approximately $325 billion by 2030.
Amid these changes, Stellantis also proposed a large voluntary severance package last week, aimed at further reducing its workforce as part of its cost-cutting efforts. The company has hinted that involuntary layoffs could occur if the voluntary program fails to attract sufficient participation.
The restructuring comes on the heels of Stellantis reporting disappointing financial results for the first half of the year, prompting it to reassess its operational and strategic priorities. Layoffs are expected to begin in October, and while the exact number may be lower than initially expected, the move highlights ongoing adjustments within the auto industry to address economic pressures and changing market demands.
