Stellantis NV, the owner of the Jeep and Ram brands, plans to eliminate as many as 2,450 hourly positions at a pickup truck factory near Detroit, the latest in a wave of cuts as it seeks to trim bloated inventories on US dealer lots.
The automaker said Friday it will stop making the entry-level Ram 1500 Classic truck at its plant in Warren, Michigan, which will move from two shifts to one. The facility, which employs a total of 3,700 United Auto Workers union members, will continue to produce the Jeep Wagoneer and Grand Wagoneer.
Stellantis Chief Executive Officer Carlos Tavares has been cutting jobs and slashing capacity at American factories since a plunge in US sales sliced first-half earnings nearly in half. Pandemic shortages led to aggressive price increases that made the company’s model lineup more expensive than similar brands. Stellantis has also taken steps this year to help dealers clear their vehicle inventories., including cutting prices and bringing back incentives.
The Ram truck brand had 188 days worth of inventory in May and is still roughly double the industry average, according to researcher Cox Automotive. The Jeep SUV brand was at 154 days and the Dodge performance brand had 138 days of supply on hand in May.
Ram pickup sales fell 23% in the second quarter and are down 20% this year through June, the company reported last month. Overall US sales fell 21% versus the year-ago period.
In December, Stellantis announced shift cuts at its Mack Ave plant in Detroit, which makes the Jeep Grand Cherokee, and at its Jeep plant in Toledo, Ohio. It has been paring back production of the Jeep Gladiator in Toledo and another version of the Ram 1500 truck at its plant in Sterling Heights, Michigan, according to AutoForecast Solutions. The Sterling Heights plant cut nearly 200 jobs in April.
The layoffs at the Warren truck plant could begin as soon as Oct. 8, and union members will be given the opportunity to work at other plants, Stellantis said.
The UAW didn’t immediately respond to a request for comment.