Stellantis lays off 2,450 workers as it withdraws Ram pickup

DETROIT – Automobile manufacturer Stellantis plans to indefinitely lay off up to 2,450 U.S. factory workers later this year as it halts production of an older version of its Ram 1500 pickup in Michigan.

The truck has been widely used as a low-cost pickup truck 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 plant will continue as planned.

“With the introduction of the new Ram 1500, production of the Ram 1500 Classic at the Warren plant [Michigan] “The truck assembly plant will close later this year,” the company said in an emailed statement.

The end of production of the Ram 1500 “Classic” is not a surprise, but the company has not announced a replacement vehicle for the truck. That worries local officials, workers and the United Auto Workers union, which represents the plant.

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 pickup will be phased out by the end of this year.

Layoffs are expected to begin as early as October. The final number of permanent layoffs at the Warren plant, which currently employs about 3,700 hourly workers, could be lower than previously announced. Some employees could be given other jobs or positions at other plants.

The layoffs are the latest for Stellantis, which has cut production at several factories due to sales problems and cost-cutting measures.

Stellantis CEO Carlos Tavares has been on a mission to cut costs since the company was formed following the merger of Fiat Chrysler and France’s PSA Group in January 2021. It’s 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 its U.S. workers a voluntary buyout plan to reduce headcount and costs. Stellantis, which reported disappointing first-half results last month, said that if not enough workers participate in the buyout plan, involuntary layoffs could follow.