The Latest Stellantis Layoffs Will Impact Nearly 200 Workers At Its Sterling Heights Plant

Stellantis is going through it. Recently, reports have suggested that company CEO Carlos Tavares could be on his way out, as the automaker has struggled financially for much of this year. Now, we’re learning that the company plans to initiate layoffs at one of its Michigan facilities, though the number of impacted workers is small compared to actions taken by rival automakers.

Stellantis said it would lay off 14 full-time and 177 temporary workers at its Sterling Heights, MI manufacturing facility, where it builds the Ram 1500. The company noted that the workers were hired primarily as seasonal employees to cover for the larger number of regular staff taking vacations in the summer. The affected temp workers will remain employed until October 1, while full-timers will depart the company on September 28.

A company statement cited volatile market conditions and other factors as motivators for the layoff, but the move may also be related to Stellantis’ plans to shift the Sterling Heights plant to focus on the production of the upcoming Ram 1500 REV pickup truck.  “Stellantis is in full execution mode focused on both protecting the company from the continued intense external market conditions and, at the same time, offering customers vehicles they can afford,” it noted. “As such, we are continuing to take the necessary actions to improve operations across our facilities; this includes on-going assessments of our manufacturing processes to improve efficiency. While that effort continues, the Company will be implementing indefinite layoffs of represented employees across its footprint.”

The Sterling Heights facility took heat from Tavares earlier this year, with the CEO laying some of the blame for the automaker’s quality issues on the plant. In April, Stellantis laid off 199 full-time employees at the location to cut costs. While that may be an effective way to reduce spending, it’s hard to imagine a scenario where employing fewer experienced workers yields higher-quality vehicles rolling off the line.

[Images: Ram/Stellantis]

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