Detroit auto workers face uncertain future as Stellantis announces layoffs for 2,450 workers amid restructuring efforts

Automotive manufacturer Stellantis has announced potential layoffs affecting up to 2,450 union workers at its Warren Truck Plant near Detroit. The facility, which currently employs about 3,700 union workers, produces an older version of the Ram 1500 pickup known as the Tradesman, Associated Press reported.

The company plans to shift production of the new 2025 Tradesman model to its Sterling Heights Assembly Plant, prompting the reduction of one shift at the Warren facility. However, Stellantis spokeswoman Jodi Tinson suggests that the job cuts may be lower due to ongoing early retirement offers and seniority bumping rights, according to the report.

The company reported last month that Ram pickup sales fell 23 per cent in the second quarter and are down 20 per cent this year through June. Overall, US sales fell 21 per cent versus the year-ago period.

According to Tinson, layoffs could begin as early as October 8. Stellantis has stated that indefinitely laid-off senior union employees will receive 52 weeks of supplemental unemployment benefits, transition assistance, and two years of healthcare coverage. This is in addition to any state unemployment benefits they may be eligible for, as per the Associated Press.

The move comes as Stellantis aims to improve its North American operations following a significant drop in first-half earnings. According to the Associated Press, the company reported a 48 per cent decrease in net profits for the first six months of the year, with revenues falling by 14 per cent.

In response to the announcement, United Auto Workers President Shawn Fain criticized Stellantis' management, stating, “The American taxpayer has invested in Stellantis. Workers have invested in Stellantis. Consumers have invested in Stellantis. It's time for Stellantis to invest in us,” as quoted by Associated Press.

Despite the job cuts, Stellantis is promoting improvements in the new Tradesman model, including an enhanced electrical system for better tracking and safety features and improved fuel efficiency, as per the Associated Press.