Stellantis Lays Off 191 Workers At SHAP Amid EV Transition

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.

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.

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.

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.