Since the release of the new generation Ram 1500 in 2018, the vehicle has been mostly utilized as an affordable pickup for fleet clients and entry-level purchasers.
Detroit The automaker Stellantis intends to stop producing an older model of its Ram 1500 pickup vehicle in Michigan later this year, which would result in the indefinite layoff of up to 2,450 American plant workers.
Since the company debuted a new model of the Ram 1500 in 2018, the truck has mostly been employed as a low-cost pickup to sell to fleet clients and entry-level purchasers. Situated close to Detroit, it is manufactured at the Warren Truck Assembly Plant with the Jeep Wagoneer and Grand Wagoneer.
A neighboring company produces the current Ram 1500, which underwent an upgrade for the 2025 model year. That plant will carry on with its scheduled operations.
“Manufacturing of the Ram 1500 Classic at the Warren [Michigan] Truck Assembly Plant will end later this year due to the introduction of the new Ram 1500,” the firm stated in an email.
It is hardly shocking that the Ram 1500 “Classic” is being discontinued, but the firm has not yet revealed what will take its place. Local authorities, employees, and the United Auto Workers union—which represents the plant—are concerned about that.
CNBC’s request for comment was not immediately answered by a union representative.
By the end of this year, the “Classic” version of the pickup will be phased away, according to Ram CEO Chris Feuell’s statement to CNBC last week.
It is anticipated that the layoffs would begin as early as October. There may be fewer permanent layoffs than previously reported at the Warren facility, which employs around 3,700 hourly workers. There’s a chance that some workers will get promotions or jobs at different plants.
Stellantis has reduced output at many sites due to sales problems and cost-cutting efforts; these layoffs are the company’s most recent.
Since Fiat Chrysler and France’s PSA Groupe merged to establish Stellantis in January 2021, Carlos Tavares, the CEO of the firm, has been on a drive to reduce costs. His “Dare Forward 2030” strategy calls for doubling revenue to $325 billion (or 300 billion euros) in revenue and profit by 2030.
In an attempt to lower expenses and headcount, the carmaker this week extended an offer of a wide voluntary buyout to salaried U.S. employees. Involuntary terminations may occur if not enough staff join in the buyout, according to Stellantis, which revealed unsatisfactory first-half performance last month.
