The 2019 Ram 1500 Rebel pickup truck is on display at the North American International Auto Show in Detroit, January 15, 2018.
Brendan McDermid | Reuters
DETROIT – Automobile manufacturer Stellantis plans to indefinitely lay off up to 2,450 workers at a U.S. factory later this year as it discontinues production of an older version of its Ram 1500 pickup truck in Michigan.
The pickup has largely been used as a low-cost pickup to sell to entry-level buyers and fleet customers since the automaker introduced a new generation of the Ram 1500 in 2018. It is produced alongside the Jeep Wagoneer and Grand Wagoneer at the Warren Truck Assembly Plant, located near Detroit.
The current Ram 1500, which was recently updated for the 2025 model year, is produced 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 in Warren [Michigan] “The truck assembly plant will be completed by the end of this year,” the company said in an emailed statement.
The discontinuation of the Ram 1500 “Classic” vehicle is not unexpected, but the company has not announced a vehicle to replace the truck. This is worrying to local governments, workers and the United Auto Workers union, which represents the plant.
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A union spokesman did not immediately respond to a request for comment.
Ram CEO Chris Feuell told CNBC last week that the “Classic” version of the truck would be phased out by the end of this year.
The layoffs are expected to begin in October. The final number of permanent layoffs at the Warren plant, which currently employs about 3,700 hourly workers, may be lower than the announced figures. Some employees may be assigned to other jobs or positions at other plants.
The layoffs are the latest for Stellantis, which has cut production at several plants due to sales problems and cost-cutting measures.
Stellantis CEO Carlos Tavares has been on a cost-cutting mission since the company was formed through a merger between Fiat Chrysler and French group PSA in January 2021. It is part of his “Dare Forward 2030” plan to boost profits and double revenue to 300 billion euros ($325 billion) by 2030.
Last week, the automaker offered a broad voluntary buyout of its U.S. salaried employees in an effort to cut staff and costs. Stellantis, which last month reported disappointing first-half results, said that if not enough employees participate in the buyout, involuntary layoffs could occur.
