The 2019 Ram 1500 Rebel pickup truck will be showcased at the North American International Auto Show in Detroit on January 15, 2018.
Brendan McDermid | Reuters
DETROIT — Automaker Stellantis plans to indefinitely lay off up to 2,450 U.S. factory workers later this year as it halts production of an older version of its Ram 1500 pickup truck in Michigan.
Since the automaker introduced a new generation of the Ram 1500 in 2018, the truck has been used primarily as a low-cost pickup for entry-level and fleet customers. It is produced along with the Jeep Wagoneer and Grand Wagoneer at the Warren Truck Assembly Plant near Detroit.
The current Ram 1500, recently updated for the 2025 model year, is manufactured at a nearby plant. Operations at that facility will continue as planned.
“With the introduction of the new Ram 1500, production of the Ram 1500 Classic will begin in Warren [Michigan] The truck assembly plant will close later this year,” the company said in an emailed statement.
The discontinuation of production of the Ram 1500 “Classic” is not unexpected, but the company has not yet announced a replacement model for the truck, causing concern among local authorities, workers and the United Auto Workers union that represents the plant.
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Ram CEO Chris Feuell told CNBC last week that the “Classic” version of the pickup truck would be discontinued by the end of this year.
UAW President Shawn Fain was critical of Stellantis' leadership in light of the cuts.
“Stellantis CEO Carlos Tavares is a disgrace and an embarrassment to what was once a great American company,” Fain said in an emailed statement Friday evening. “Meanwhile, Tavares is raising his own pay by 56 percent while laying off thousands of autoworkers. If an autoworker did as miserable a job as Stellantis CEO Carlos Tavares, he would be fired.”
Layoffs are expected to begin as early as October. The final number of permanent layoffs at the Warren plant, which currently employs about 3,700 hourly workers, could be lower than the announced numbers. Some employees could receive other jobs or positions at other plants.
The layoffs are the latest measures at Stellantis, which has reduced production at several plants due to sales problems and cost-cutting measures.
Tavares has been on a cost-cutting mission since the company was created through a merger between Fiat Chrysler and France's PSA Groupe in January 2021. This is part of his “Dare Forward 2030” plan to increase profits and double sales to 300 billion euros, or $325 billion, by 2030.
The automaker offered its U.S. employees a large voluntary severance package last week to reduce headcount and costs. Stellantis, which reported disappointing half-year results last month, said if enough employees do not participate in the severance package, involuntary terminations could result.
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