Stellantis NV has indefinitely laid off approximately 1,100 workers from its Warren Truck Assembly plant in Michigan, as the company prepares for a shift toward producing electrified vehicles. The layoffs, which began Oct. 12, are part of a larger reorganization effort that could affect more than 2,000 employees at the plant, according to initial estimates.
The layoffs come as Stellantis deals with declining demand for some of its current models. Eric Graham, president of the United Auto Workers (UAW) Local 140, told The Detroit News another 149 workers could be placed on indefinite layoff soon, due to low orders of the Jeep Wagoneer and Grand Wagoneer SUVs.
Graham noted that Warren Truck has been temporarily shut down, with the potential for it to extend. The shutdown was pre-planned, but was also partly due to low orders of the Jeep SUVs.
In August, Stellantis announced its intention to halt production of the Ram 1500 Classic at the Warren plant. This decision followed a reported 21% year-over-year decline in sales during the second quarter. At that time, the automaker revealed plans to lay off up to 2,450 workers at the plant, which employs around 3,700 UAW-represented workers, meaning more than 60% of the hourly workforce could be impacted.
However, Stellantis has indicated it is investing $97.6 million into the Warren Truck Assembly Plant to prepare for the production of the electrified Jeep Wagoneer. This investment will allow the plant to produce both internal combustion engine models and all-electric versions of the Wagoneer on the same line. The electric Jeep Wagoneer is expected to launch by the end of 2025.
