LANSING, Mich. (Michigan News Source) — Stellantis is shifting gears in Warren, announcing plans to indefinitely lay off up to 2,450 jobs at its Truck Assembly Plant come October, as the company halts production of the Ram 1500 Classic pickup truck.

The Ram 1500 Classic, introduced as a cost-effective alternative to the newer Ram 1500 model, has been a mainstay for entry-level buyers and fleet customers. Its production will cease, however, as Stellantis transitions to the updated Ram 1500 for the 2025 model year. While production continues at the nearby Sterling Heights facility for the newer model, the Warren plant faces a reduction in operations, moving from two shifts to one (The Detroit News).

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The layoffs are expected to impact the local economy and the livelihoods of the affected workers. Candace Watts, a long-time employee who serves on the executive board for United Auto Workers (UAW) Local 140, voiced her fears to The Detroit News: “We knew it was coming, but to actually find out that it’s reality is scary, to say the least.” For workers like Watts, the uncertainty of whether they will be among those laid off adds to the anxiety.

The decision has also drawn criticism from UAW President Shawn Fain, who pointed out the  disparity between the CEO’s 56% pay increase and the plight of thousands of autoworkers (CBT News). 

“The American taxpayer has invested in Stellantis. Workers have invested in Stellantis. Consumers have invested in Stellantis. It’s time for Stellantis to invest in us,” Fain told CBT News. “We have been clear in private and in public with Stellantis that Tavares’s mismanagement of this company and his lack of commitment to the American autoworker is unacceptable.”

In addition, local businesses such as the Motor City Sports Bar & Grill are bracing for a downturn in customer traffic. Owner Maria Nuculaj expressed her concerns: “It hurts all the businesses. There’s a domino effect. Everyone will feel it,” Nuculaj said (The Detroit News).

The layoffs are also expected to affect suppliers and other industries linked to automotive manufacturing, as reported by The Detroit News. For instance, Bridgewater Interiors has already announced layoffs related to the cuts at the Warren plant. 

The decision to end Ram 1500 Classic production and the subsequent layoffs are part of Stellantis CEO Carlos Tavares’s broader “Dare Forward 2030” strategy. This plan strives to double the company’s revenue by 2030 through cost-cutting measures and operational efficiencies. 

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Politically, the layoffs are likely to become a hot-button issue in the upcoming elections. Michigan, a critical battleground state, has already seen comments from Trump’s campaign, criticizing the current administration’s policies. 

“Their EV government mandates and radical energy policies will continue to decimate the auto industry, eliminating Michigan jobs and hurting our economy,” Victoria LaCivita, Michigan communications director for Trump’s campaign, said (The Detroit News). “This is what’s on the line in November, and why voters are going to send President Trump back to the White House.”

Despite the bleak outlook, the plant will continue producing the Jeep Wagoneer and Grand Wagoneer SUVs, which have shown strong sales. Additionally, Stellantis has committed $400 million to the Warren plant for future vehicle models, including potential electric versions of Jeep SUVs.