Stellantis announces layoffs as Ram 1500 production ends at Michigan plant

Aug. 9 (UPI) -- Stellantis said Friday it is cutting a shift at Michigan's Warren Truck Assembly plant as Ram 1500 pickup production ends there.

Due to UAW union contracts, many of the 2,450 affected workers may shift elsewhere in the company rather than face layoffs.

Any union workers who do get laid off will get benefits under the union contract.

Stellantis said in a statement that "indefinitely laid-off represented seniority employees will receive 52 weeks of supplemental unemployment benefits (paid by the company) and 52 weeks of transition assistance. This would be in addition to any state unemployment benefits an employee might be eligible to receive. They will also receive two years of health care coverage."

Layoffs could start as soon as October.

The Ram 1500 ending production at the Michigan plant is an older version known as the Classic. Stellantis has not announced a replacement for it.

In an emailed statement to CNBC, Stellantis said, "With the introduction of the new Ram 1500, production of the Ram 1500 Classic at the Warren [Michigan] Truck Assembly Plant will come to an end later this year."

According to a WARN letter required as notice for planned layoffs, Stellantis said up to 2,450 workers could be affected. But the actual layoff total is likely to be less than the total in that letter.

The plant employs roughly 3,700 UAW members.

Stellantis will continue to make Jeep Wagoneer and Grand Wagoneer SUVs at the Warren plant.