Stellantis plans to lay off up to 2,450 workers at its Ram truck plant in Warren, Michigan, starting as early as October 8, 2024, due to the discontinuation of the Ram 1500 Classic pickup truck.

The Ram 1500 Classic, which has been in production since 2009, will cease production later this year as Stellantis shifts focus to the newer Ram 1500 model introduced in 2018.

These layoffs are part of a cost-cutting strategy in response to sluggish North American sales and operational inefficiencies.

This move follows previous job cuts at other Stellantis plants, highlighting a broader trend of production reductions due to declining sales.

Approximately 3,700 workers at the Warren plant are represented by the United Auto Workers (UAW) union, which has raised concerns about the layoffs and the lack of a replacement for the Classic.

There is currently no announced replacement for the Ram 1500 Classic, which has raised concerns among local governments, workers, and the UAW.

Laid-off union members will receive 52 weeks of supplemental unemployment benefits, transition assistance, and two years of healthcare coverage.

Stellantis CEO Carlos Tavares described the company's first-half 2024 profits as disappointing, with a nearly 50% drop to 5.6 billion euros (about $6 billion).

Following the announcement of layoffs, Stellantis shares fell 1.4% to a new 52-week low.

Production at the Warren plant will shift from a two-shift to a one-shift operating pattern for general assembly, while other operations will continue on two shifts.

In addition to the layoffs, Ram is introducing the 1500 REV, a fully electric pickup, to compete with the Ford F-150 Lightning.

The Ram 1500 Classic has served as a valuable entry point for customers, particularly commercial truck buyers, but its discontinuation marks the end of an era for this long-standing model.