Stellantis Announces More Layoffs At Sterling Heights Assembly

Stellantis will lay off an additional 42 full-time union members at the Sterling Heights Assembly Plant (SHAP) starting Monday, October 7, 2024. The announcement came in a letter from United Auto Workers (UAW) Local 1700 to its members, citing overstaffing issues at the facility. Affected employees have already been notified, and a robocall will be sent immediately to provide further information.

“This news is heartbreaking, and with the direction that Stellantis is currently going, we could be looking at more layoffs in the immediate future,” the letter stated. “Prayers are going out to all those that are affected. Please contact your Benefit Rep. immediately to explain what benefits you are entitled to and how to go about receiving those benefits.”

This latest round of layoffs brings the total number of union members on indefinite layoff at SHAP to 56. The union acknowledged that the layoffs were not unexpected, pointing to Stellantis’ current operational strategy. “Management has been forced to deliver accurate numbers to support the claim that 42 full-time union members need to be indefinitely laid off due to overpopulation of the plant,” the letter explained. The union also referred to contractual procedures for layoffs, noting that the process was followed as outlined in the Plant Management and Production (PM&P) book.

Sterling Heights Assembly Plant: A Brief History – 

The Sterling Heights Assembly Plant has a long and storied history. Originally built in 1953 as a jet engine plant, it was operated by the U.S. Army as the Michigan Ordinance Missile Plant. Chrysler was contracted to build Redstone and Jupiter missiles during the Cold War. In 1980, Volkswagen converted the facility into an automobile plant before Chrysler Corporation purchased it in 1983.

Over the decades, SHAP has been the home of many iconic Chrysler, Dodge, and Ram vehicles. Production began with the Chrysler LeBaron GTS and Dodge Lancer in 1984, followed by models like the Dodge Shadow, Plymouth Sundance, and later the Chrysler Sebring and Dodge Avenger. In 2018, the plant became the production hub for the highly popular Ram 1500 (DT) pickup truck, which remains the company’s best-selling vehicle.

Investments and Future Production – 

Over the years, Stellantis has made significant investments in the Sterling Heights plant. Most recently, in September 2024, the company announced a $235.5 million investment to produce the all-electric 2025 Ram 1500 REV and the range-extended 2025 Ram 1500 Ramcharger. Both models are expected to be key players in the company’s transition to electric vehicles (EVs).

Despite these investments, staffing levels at SHAP have fluctuated. In January 2021, the plant transitioned from a 3-2-120 operating pattern to a traditional three-shift operation. However, the shift toward EVs and other market changes have now led to staffing adjustments, including these latest layoffs.

Looking Ahead –

UAW Local 1700 warned that more layoffs could be on the horizon. “With the direction Stellantis is currently going, we could be looking at more layoffs in the immediate future,” the letter cautioned. The union encouraged affected workers to reach out for assistance and to review the specific layoff procedures outlined in the contract.

As the automotive industry continues its shift toward electrification, SHAP’s role in Stellantis’ strategy will be critical. The Ram 1500 REV and Ramcharger are key to the company’s future, but the layoffs remind employees of the challenges faced during this transitional period.