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Stellantis Lays Off 191 Workers At SHAP Amid EV Transition

Job Cuts Come As Stellantis Prepares For Electric Ram 1500 REV Production...

Stellantis is laying off 191 workers at the Sterling Heights Assembly Plant (SHAP) in Michigan as it prepares to produce the highly anticipated all-electric Ram 1500 REV pickup. The automaker announced that 177 temporary workers, referred to as supplemental employees, will be separated from the company effective October 1. Additionally, 14 full-time workers will be laid off starting September 28.

According to Stellantis, the temporary workers were brought in to cover increased vacation time during the summer months, a common practice in the auto industry. The company cites ongoing assessments of its manufacturing processes and efforts to improve efficiency as reasons for the layoffs.

Ram 1500 production at the Sterling Heights Assembly Plant (SHAP) in Michigan. (Ram).

A Stellantis spokesperson stated, “We are focused on protecting the company from the intense external market conditions while ensuring we offer vehicles that our customers can afford. This requires continuous actions to optimize operations across our facilities, including workforce adjustments when necessary.”

This announcement follows a similar reduction in April when Stellantis cut 199 full-time jobs at the same plant. The job cuts are part of a broader cost-cutting initiative affecting various plants across Stellantis’ global operations.

Ram 1500 production at the Sterling Heights Assembly Plant (SHAP) in Michigan. (Ram).

The Sterling Heights facility, located in suburban Detroit, plays a critical role in Stellantis’ truck lineup. It has been producing the Ram 1500 (DT), including the Quad Cab and Crew Cab configurations, and is now undergoing significant updates to accommodate the production of electric vehicles (EVs). Stellantis is investing $235.5 million to retool the plant to build the all-electric Ram 1500 REV and the range-extended Ramcharger, alongside the gasoline-powered Ram 1500. These upgrades include new conveyor systems, automation for EV-specific processes, and rearranged workstations.

The Sterling Heights plant will be Stellantis’ first U.S. facility to manufacture EVs. the Ram 1500 REV production is expected to start by the end of 2024.

Ram 1500 production at the Sterling Heights Assembly Plant (SHAP) in Michigan. (Ram).

SHAP has a rich history dating back to 1953 when it was built as a jet engine plant for the U.S. Army. At the time, Chrysler was contracted to build Redstone and Jupiter missiles. By 1980, Volkswagen converted the facility into an automobile plant, which Chrysler later purchased in 1983.

Over the years, SHAP has produced a range of vehicles, from the Chrysler LeBaron to the Dodge Avenger and the Chrysler 200. In 2018, it transitioned to producing the Ram 1500, following a $1.48 billion investment to retool the plant.

As Stellantis moves forward with its electrification plans, SHAP remains at the center of this transformation, ensuring it plays a pivotal role in the company’s future.

Robert S. Miller

Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only the Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.

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UAW Criticizes Stellantis Layoffs at Sterling Heights Plant​

Stellantis Cites Market Conditions For Job Cuts...​

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Stellantis has announced plans to lay off 191 workers at its Sterling Heights Assembly Plant (SHAP) in Metro Detroit, a move that has sparked sharp criticism from the United Auto Workers (UAW). The layoffs, set to take effect on October 1, 2024, will primarily impact seasonal supplemental employees who were hired to cover for increased summer vacation periods. Stellantis pointed to challenging market conditions and the need for operational adjustments as the primary reasons behind the job cuts.

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???????? Who did the Union just endorse for President? This is BS on Fain's part he knows DAMN well that a EV takes 30% less labor to produce, and that doesn't include how much of that is off loaded to Asia.

Not to mention even in the CARB states there is a disconnect between the regulatory and consumer.

I am not trying to insert politics in it but the difference between one side of the isle is clear on subject. ONE very much believes that there is a single solution to Climate change, and it is the forced adoption of EV vehicles.

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???????? Who did the Union just endorse for President? This is BS on Fain's part he knows DAMN well that a EV takes 30% less labor to produce, and that doesn't include how much of that is off loaded to Asia.

Not to mention even in the CARB states there is a disconnect between the regulatory and consumer.

I am not trying to insert politics in it but the difference between one side of the isle is clear on subject. ONE very much believes that there is a single solution to Climate change, and it is the forced adoption of EV vehicles.

The union didn't endorse Kamala, Shawn Fain is. I know a lot of people who are UAW members who are voting the other way.

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The union didn't endorse Kamala, Shawn Fain is. I know a lot of people who are UAW members who are voting the other way.

Yes, in detail you are correct. But the same organization head is complaining about something HE endorsed.

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