Stellantis, the automaker behind the Ram brand, plans to indefinitely lay off up to 2,450 factory workers in the U.S. later this year. The layoffs are tied to discontinuing the Ram 1500 Classic, an older version of the popular pickup truck produced at the Warren Truck Assembly Plant near Detroit, Michigan. Since introducing the new-generation Ram 1500 in 2018, this model has primarily served as a budget-friendly option for entry-level buyers and fleet customers.
The decision to end the Ram 1500 Classic production is not entirely unexpected, especially with the recent update of the current Ram 1500 for the 2025 model year. While production at the Warren plant will cease, operations at a nearby facility, where the newer Ram 1500 is built, will continue without disruption.
Despite anticipating the Classic’s phase-out, the lack of a replacement vehicle has raised concerns among local governments, workers, and the United Auto Workers (UAW) union, representing the plant’s employees. The layoffs are expected to begin as early as October, with the final number potentially lower than the announced figure, depending on whether some employees can be reassigned to other positions within the company.
UAW President Shawn Fain criticized Stellantis leadership, particularly CEO Carlos Tavares, for the decision. Fain expressed frustration over the layoffs, pointing out that while Tavares received a 56% pay increase, thousands of autoworkers are losing their jobs.
This move is part of a broader cost-cutting strategy led by Tavares, who has been focused on improving the company’s financial performance since Stellantis was formed in January 2021 through a merger between Fiat Chrysler and France’s PSA Groupe. The layoffs at the Warren plant follow a series of production cuts at other Stellantis facilities. They are aligned with the CEO’s “Dare Forward 2030” plan, which aims to double the company’s revenue to $325 billion by 2030.
In addition to the layoffs, Stellantis recently offered a voluntary buyout to U.S. salaried workers in an effort to reduce headcount and costs. The company, which reported disappointing first-half results last month, has indicated that involuntary terminations may follow if not enough employees accept the buyout.
