Stellantis Cuts Off 2,450 Workers Following End of Classic Ram Truck Production

By Israel Monte

Aug 11, 2024 09:14 PM EDT

Stellantis has cut down its workforce after concluding the production of one of its classic offerings. 

Reuters reported Friday that Stellantis laid off 2,450 factory workers from its Detroit Warrant Truck assembly plant and ended its production on the Ram 1500 Classic truck.

The company said the layoffs would take effect on Oct. 8. The plant will also transition from a two-shift to a one-shift operating pattern. Stellantis stated that the Jeep Wagoneer assembly would also operate in one shift.

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Since the Ram 1500 Classic production stopped this year, Stellantis plans to turn its attention to the Ram 1500 Tradesman truck. The unit is currently produced at the company's Sterling Heights Assembly facility.

An official from the automaker shared thoughts about the Tradesman unit, mentioning its improved features and value.

"We have introduced the brand new 2025 RAM 1500 Tradesman with incredible value and content," the Stellantis spokeswoman shared. "Its electrical architecture gives new technology a chance to be useful to commercial fleets, increasing quality in tracking and safety systems."

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The United Auto Workers union includes 3,700 plant workers. Union members who were cut off will receive 52 weeks of supplemental unemployment benefits, 52 weeks of transition assistance and two years of healthcare coverage from Stellantis.

In November 2023, the United Auto Workers union established new labor deals with Stellantis after engaging in a six-week strike. The company agreed to develop a $3.2 billion battery plant and invest $1.5 billion in an Illinois truck factory.

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Shawn Fain, the union's president, revealed that the labor deal contained a 25% pay increase and upgraded retirement benefits.

Stellantis also laid off around 400 U.S. workers in March to cut costs and amplify its production plans for electric vehicles.

Last month, Stellantis offered voluntary buyouts to its U.S. salaried workers.  

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