The automotive corporation Stellantis, known as the manufacturer of Jeep and Ram Truck models, has announced the layoff of 2,450 employees in Michigan. This decision follows the planned cessation of production of a Ram Truck model at a plant in Warren, which has been known for manufacturing pickups for decades.

The job cuts come at a time when Stellantis' market share in the USA is shrinking and dealers are complaining about rising inventories. At the same time, the company is preparing to expand its model range to include battery-powered vehicles in order to remain competitive with other automakers.

Another factor for the job cuts is the collective agreement concluded last year between Stellantis and the United Auto Workers (UAW) union, which secured higher wages and improved benefits for employees but also increased labor costs for the European automaker. According to the company's statements, layoffs could begin as early as October 8, although the actual number of affected employees may be lower if some can be relocated to other locations.

The plant in Warren, Michigan, which currently employs around 3,700 workers represented by the UAW, is shifting from a two-shift operation to a one-shift operation in general assembly. Other Stellantis sites will continue to operate in two shifts.