Stellantis closes Arizona testing site after layoffs in Michigan

In October 2023, Stellantis announced the closure of its largest vehicle testing facility in Yucca, Arizona, in conjunction with significant layoffs affecting its workforce in Michigan. The move follows the layoffs of over 1,100 workers at the Warren plant and approximately 200 at the Sterling Heights facility in the prior month. The Arizona Proving Grounds, which spans 4,000 acres and was purchased for $35 million in 2007, has been integral to the automaker's vehicle testing and development operations. While about 69 employees were retained at the site, many were laid off as a result of the facility's closure. Despite these job cuts, Stellantis's CEO Carlos Tavares saw a notable salary increase of 56%, totaling nearly $40 million in 2023. This situation has drawn criticism, particularly as Stellantis has also pursued an outsourcing strategy to low-wage labor markets, leading to the layoffs of around 400 American engineers. By the end of 2022, Stellantis had significantly fewer salaried employees in the U.S. compared to competitors like General Motors and Ford. The United Auto Workers union had previously secured commitments for the reopening of the Belvidere Assembly Plant in Illinois, yet Stellantis has not fulfilled this promise, which has raised concerns among local officials, including Illinois Treasurer Michael Frerichs. The ongoing restructuring and closures exemplify a larger trend within the auto industry, where manufacturing jobs are increasingly under threat amid cost-cutting measures and a pivot towards globalized labor markets.