Stellantis is laying off nearly 200 workers at its Sterling Heights Assembly Plant in suburban Detroit, where the company builds the Ram 1500. Effective September 28, these layoffs include all 177 temporary workers, referred to as supplementals, along with 14 full-time employees. The decision was communicated through a UAW Local 1700 letter representing the plant’s workers.
The move follows a series of operational changes at the Sterling Heights facility, driven partly by Stellantis CEO Carlos Tavares’ concerns over production inefficiencies. In July, Tavares pointed out that the plant was one of the main contributors to producing vehicles that required repairs before being shipped to dealerships.
This is not the first round of layoffs at the facility. In April, Stellantis cut 199 full-time workers at Sterling Heights as part of a broader global cost-cutting strategy. These job reductions add to a trend of workforce downsizing that has affected hourly, salaried, and supplemental workers since UAW members ratified their contract with Stellantis in November 2023.
Stellantis’ production changes have also impacted the nearby Warren Truck plant. In August, the automaker announced it would indefinitely lay off up to 2,450 workers at Warren as it phases out the Ram 1500 Classic pickup to shift focus to the Jeep Wagoneer SUV.
Despite these layoffs, Stellantis is investing heavily in its Sterling Heights Assembly Plant, committing $235.5 million to modernize the electric vehicle (EV) production facility. The plant will be updated to build the fully electric Ram 1500 REV and the extended-range electric Ramcharger alongside the conventional gasoline-powered Ram 1500. The revamp includes installing a new conveyor system, automation specific to battery electric vehicles (BEVs), and retooling workstations in the general assembly area. Stellantis has collaborated with equipment suppliers and contractors to execute these upgrades.
Once completed, Sterling Heights Assembly will become Stellantis’ first U.S. plant to manufacture electric vehicles, a significant milestone for the company as it accelerates its electrification strategy. Before the end of the year, the facility will start producing the Ram 1500 REV, positioning it as a key player in the automaker’s future electric vehicle lineup.
