Facility Closure and Employee Impact
announced the closure and sale of its Arizona Proving Grounds, a 4,000-acre vehicle testing site, as part of its cost-cutting measures under CEO . The site has been in use since 2007, purchased from Ford for $35 million.
The closure affects 41 employees, with Stellantis offering special packages or transfers but also considering indefinite layoffs. The company plans to utilize 's proving grounds in Arizona starting next year.
Broader Context and Controversies
This decision follows significant layoffs at Stellantis' Michigan plants and a broader reduction of U.S. employees by 15.5% since 2019. The company has also outsourced engineering jobs to countries with lower labor costs.
Critics, including the and local politicians, have raised concerns over Stellantis' layoffs and outsourcing strategies, especially given CEO Tavares' salary increase to nearly $40 million in 2023 amidst these cutbacks.