The 2019 Ram 1500 Rebel pickup truck is on display at the North American International Auto Show in Detroit on January 15, 2018.
Brendan McDermid | Reuters
Detroit — Automobile Manufacturer Strantis It plans to lay off up to 2,450 U.S. factory workers indefinitely later this year as the company stops production of older Ram 1500 pickup trucks in Michigan.
Since the automaker introduced the new-generation Ram 1500 in 2018, the truck has been primarily used as a low-cost pickup truck, sold to entry-level buyers and fleet customers. grand station wagon Warren Truck Assembly Plant near Detroit.
Current Ram 1500, most recently updated to 2025 new year styleis produced in a nearby factory. Operations at the facility will continue as planned.
“With the introduction of the new Ram 1500, production of the Ram 1500 Classic at the Warren (Mich.) Truck Assembly Plant will end later this year,” the company said in an emailed statement.
The discontinuation of the Ram 1500 “Classic” vehicle is not unexpected, but the company has not yet announced a replacement for the truck. That worries local governments, workers and the United Auto Workers union, which represents the plants.
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A spokesman for the union did not immediately respond to CNBC’s request for comment.
Ram CEO Chris Feuell told CNBC last week that the “classic” pickup truck will be phased out by the end of the year.
The layoffs are expected to begin as soon as October. The Warren plant, which currently employs about 3,700 hourly workers, may end up with fewer indefinite layoffs than announced. Some employees may hold other jobs or positions at other facilities.
The layoffs are the latest for Stellantis, which has cut production at several plants due to sales issues and fallout. cost cutting measures.
Stellantis Chief Executive Carlos Tavares has been on a cost-cutting mission since January 2021, when Fiat Chrysler merged with France’s PSA Group to form the company. As part of the plan, it aims to increase profits and double revenue to 300 billion euros, or $325 billion, by 2030.
The automaker last week Offer broad voluntary buyout Provide services to U.S. salaried workers to reduce headcount and costs. Strantis reported Disappointing first half results It said last month that involuntary layoffs could occur if not enough employees participate in the acquisition.
