Stellantis Cuts 199 Full-Time Employees From Its SHAP Facility

Stellantis has laid off 199 full-time employees at its Sterling Heights Assembly Plant (SHAP) in Michigan. The plant produces the company’s most popular vehicle – the Ram 1500 (DT).

On Friday, the automaker handed out layoff notices to those 199 employees, saying their layoffs would take effect on Monday. This move comes as the automaker continues cutting its workforce in North America and Europe. The layoffs at SHAP are the latest to affect hourly, salaried, and supplemental workers since the United Auto Workers (UAW) union ratified its contract with the automaker in November.

Stellantis released a statement on Monday, saying that layoffs will help productivity and ensure its efforts as it transitions to produce more electric vehicles (EVs).

“With a focus on preserving business fundamentals in a highly competitive and challenging U.S. automotive industry, Stellantis continues to take action to improve the efficiency of its manufacturing facilities,” the statement said. “As a result of ongoing operational reviews, the company will be implementing indefinite layoffs across its U.S. footprint over the coming months. These actions will help improve productivity and ensure the company’s long-term sustainability in a rapidly changing global market.”

The announcement was met with disgust as UAW Local 1700 President Michael Spencer, who represents the union workers at SHAP, said the automaker is putting “profits over people.”

“I find it disappointing, disgusting, and a disservice to the employees who are currently employed and those employees who were released through mass termination from Stellantis since the ratification of the 2023 contract,” Spencer said in a statement. “We are talking about families and communities that are directly affected by a company that chooses to play monopoly with people’s lives. In order to build a successful future, the investment has to be with the same people that make your product and profits possible and successful. Manipulation and lack of integrity are characteristics of wolves in sheep’s clothing, especially if you control the public narrative.”

These recent layoffs come amid a backdrop of recent workforce reductions across Stellantis’ North American operations. Last month, the company shed about 2% of its U.S. engineering, technology, and software jobs, citing global uncertainties and intensified competitive pressures. In March, 341 supplemental workers were let go at the Toledo Assembly Complex, while another 239 faced the same fate at a Detroit parts sequencing facility.

Adding to the complexity, Ram pickup sales saw a 15% decline in the year’s first quarter. Nonetheless, the newly updated 2025 Ram 1500 produced at the SHAP facility is reaching dealers now.

Video Source: WDIV Detroit