Stellantis Cuts Warren Truck Down To A One-Shift Operation

Stellantis has announced that it will reduce production hours at its Warren Truck Assembly Plant in Michigan for the month of July. Starting on July 1, the plant will operate on a single shift instead of the usual two shifts. Stellantis officials have not yet confirmed whether additional shifts will be reinstated in August. A third shift was eliminated at the plant in October 2022.

According to Stellantis, the decision to cut hours aims to align production with current sales. A company spokesperson explained, “We will continue to monitor demand and take the necessary action to balance inventories.” This move is part of a broader strategy to manage production levels and maintain an appropriate inventory of vehicles.

The announcement follows a recent pledge by Stellantis leadership to implement significant cost-cutting measures. At an investor meeting in late June, Stellantis CEO Carlos Tavares revealed plans to reduce costs by 30%. These efforts are expected to impact jobs across several locations, including the Auburn Hills office tower, where much of the cost-cutting will be focused.

“We have at least two plants that need a significant turnaround; at least two,” Tavares said during the investor meeting. This indicates that the Warren Truck Assembly Plant is not the only facility facing adjustments as Stellantis seeks to streamline operations. 

The United Auto Workers (UAW) union has expressed concern over the reduction in production hours. The union claims Stellantis is cutting hours to save money at the expense of its workers. Last year, the UAW was particularly critical of Stellantis during contract negotiations with the Detroit Big-3 automakers, which led to a strike across several states. The union argues that Stellantis, despite being the most profitable of the Big-3, continues to make decisions that adversely affect its workforce.

The UAW has assured workers affected by the shift reduction in Warren will receive layoff pay and benefits under their new union contract. 

The Warren Truck Assembly Plant produces the 2024 Jeep® Wagoneer/Grand Wagoneer (WS) and the 2024 Ram 1500 Classic (DS). The Ram 1500 Classic is scheduled to be discontinued later this year. As of mid-June, the Wagoneer had a 258-day supply on U.S. dealer lots, making it the seventh-slowest-selling vehicle in the country for the month, according to CarEdge.com.

With starting prices of $64,945 for the Wagoneer and $93,945 for the Grand Wagoneer, both models are significantly more expensive than the average transaction price of a new vehicle in the U.S., which stands at $48,389, according to Clark.com.

Source: Stellantis, WDIV Channel 4