Last week, Stellantis NV laid off around 1,100 workers from its Warren Truck Assembly plant in Michigan. In August, the legacy automakers announced it would lay off more than 2,000 employees at the MI plant.
At first, the number of employees that Stellantis let go surprised people because it was far lower than the company’s initial estimate. However, the President of the United Auto Workers Local 140, Eric Graham, believes more job cuts will be announced. Graham predicts that 149 workers at the Warren Truck Plant will be laid off next. He believes low orders of the Jeep Wagoneer and Grand Wagoneer SUVs will result in more layoffs.
The UAW President noted that Warren Truck has been temporarily shut down since last week, partly due to the low number of orders for the luxury full-size Jeep SUV. He predicts that the shutdown could last a little longer, leading to temporary layoffs for some employees.
After reporting a 21% year-over-year decline in the second quarter, Stellantis announced it would stop producing the Ram 1500 Classic at the Warren Truck Assembly Plant. Following the announcement, Stellantis stated it was preparing to lay off 2,450 workers at the Warren Truck plant. Automotive Dive reported that the MI plant employed 3,700 UAW-represented workers. The layoffs could affect more than 60% of the plant’s hourly workers.
Stellantis plans to retool the Warren Truck Assembly Plant because it will be producing the electrified Jeep Wagoneer. The company plans to invest approximately $97.6 million into the MI plant to make internal combustion engine Jeep models on the same line as the all-electric Jeep Wagoneer.
Stellantis is expected to launch the electric Jeep Wagoneer before the end of 2025.
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