Stellantis Warns of Potential Layoffs at Warren Truck Plant

Stellantis has announced the possibility of laying off up to 2,450 of the 3,700 union workers at its Warren Truck Plant, located just outside Detroit. The plant primarily produces the older version of the Ram 1500 pickup, known as the Tradesman, which is mainly sold to commercial clients. The company is transitioning production of the new Tradesman model to the Sterling Heights Assembly Plant, which has raised concerns about job security among workers at the Warren facility. According to Stellantis spokeswoman Jodi Tinson, the actual number of layoffs may be lower than anticipated due to ongoing early retirement offers and seniority bumping rights. Affected senior union employees will receive 52 weeks of supplemental unemployment benefits, transition assistance, and two years of healthcare coverage, in addition to any state unemployment benefits they may qualify for. The layoffs could commence as early as October 8. The announcement comes amid a significant decline in Stellantis's financial performance, with net profits dropping by nearly 50% in the first half of the year, attributed to lower sales and restructuring costs. The company reported net profits of 5.6 billion euros ($6 billion), down from 11 billion euros in the same period last year. Revenues also fell by 14%, highlighting the challenges facing the automaker. United Auto Workers President Shawn Fain criticized Stellantis CEO Carlos Tavares for the management decisions leading to these layoffs, emphasizing the investments made by American taxpayers, workers, and consumers in the company.