Warren Truck layoffs heighten fears Ram production will move to Mexico

Warren — Leaders of the United Auto Workers in Metro Detroit have expressed concern and frustration in recent weeks about more production of Ram pickup trucks potentially heading to Mexico.

Stellantis NV, the parent of Ram, Jeep and other brands, announced plans Friday for up to 2,450 layoffs at its Warren Truck Assembly plant in early October after production of the Ram 1500 Classic ends and general assembly at the facility moves to one exchange.

UAW officials in Warren say they could maintain a second shift if the plant could accept overflow production of the latest generation Ram 1500 from the nearby Sterling Heights Assembly Plant, or SHAP, once that facility reaches capacity. But that is not certain.

Both the union and analysts say it appears the overwork will go to a plant in Mexico, a prospect sure to be a flashpoint between the UAW and CEO Carlos Tavares, whose public criticism of the workforce trade unions are intensifying. A Stellantis spokesman said last week that no decision on overflow production had been announced.

“We are truck builders. That’s what we do over there,” said Eric Graham, president of Warren Truck’s UAW Local 140, before the layoff announcement. “So now they’re telling us we’re not good enough to build you overflow? That’s a slap in the face for a lot of people employees”.

SHAP union leaders have their own longer-term concerns about moving Ram 1500 production to Mexico, potentially after the current UAW contract expires in 2028. Those concerns were heightened after Tavares late last month cited issues with “ the factory’s straight-run rate, or how many trucks need repairs after final assembly.

Michael Spencer, president of Local 1700, which represents SHAP workers, interpreted the comments as the company trying to build a public narrative — “a form of sabotage,” he said — that the plant is not up to the task of building the new Ram 1500 .The plant has been building the gas-powered truck since 2025 and is also slated to produce electric and extended-range EV versions, according to the UAW contract with the company.

The Saltillo Truck Assembly Plant is the facility in Mexico that has long built some Ram trucks, including today’s heavy-duty and commercial versions such as the 2500, 3500, 4500 and 5500.

Stellantis is not alone in operating full-size truck production outside the United States. General Motors Co. builds trucks in the United States, Mexico and Canada. Ford Motor Co. manufactures them in Dearborn, Kentucky and Ohio, although after the UAW strike last fall, CEO Jim Farley suggested the company would have to “think carefully about our (manufacturing) footprint.” Last month, the company said its Oakville assembly plant in Canada will build some of its F-Series Super Duty trucks starting in 2026.

“Down the street from SHAP”

Warren Truck will continue to build the Jeep Wagoneer and Grand Wagoneer SUVs through at least 2028, according to the UAW contract. But the contract does not mention that any new vehicles will come to the factory in the next few years.

Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions LLC, said there is one vehicle that could be a strong possibility for the factory: the Ram 1500 Ramcharger, which will be battery-powered but include an on-board gas engine for reloading.

The Ramcharger will share many components with a so-called EREV-like version of the Wagoneer and Grand Wagoneer, which is due to be launched at Warren Truck next year, he said. So it might make sense to build them together, “but we haven’t seen any plans for that yet.”

However, there had been real hope that Warren Truck might be able to work on the gas-powered Ram pickup overflow, according to Graham, as well as recent letters from other union leaders. It made sense, since the facility has built the Classic pickup and various other versions of Ram and Dodge trucks for decades.

Graham said the company raised concerns about costs, production efficiency, quality and employee participation at Warren Truck earlier this year. But three out of four of those issues have been resolved, he said, with attendance still a problem in recent months. The attendance issue could also be addressed, he said, with the company’s help with childcare and scheduling.

“We’re right down the street from SHAP,” Graham said, noting the two plants are about a 15-minute drive away on Mound Road. “And I just don’t understand why we don’t get it (the overflow) and nobody can.”

He added: “I haven’t been in the boardrooms of Stellantis… I don’t know what I’m talking about. But the one thing I do know is that it is much cheaper to build a vehicle in Mexico. You pay the workers less.”

UAW President Shawn Fain noted in a recent letter to Stellantis members that “the overflow will not reach Warren Truck,” but pledged to continue fighting to keep Ram production in the United States. UAW officials have acknowledged that it was always possible for the spillover work to go to Mexico because of the contract language.

A so-called “dual-source” letter included in the agreement opened the door for Ram production to take place elsewhere in North America, although it guaranteed SHAP’s operation through the end of the contract.

“The company has been clear that while Sterling Heights Assembly will produce the Ram 1500 ICE, BEV, and REPB, it may be necessary to establish a dual source in North America” to produce the gas-powered truck after the launch of the electric truck at the end of this year. , to “meet market demand,” the dual-source letter states. It adds that production volumes at SHAP cannot be reduced unless the secondary overflow location is shut down first.

Marick Masters, a business professor emeritus at Wayne State University and a UAW expert, said it is likely there is still some negotiation that can take place between the union and the company over the Ram overflow location. But overall, he said it’s no surprise that Stellantis is aiming to put more production in Mexico at lower prices as it tries to save money during the EV transition.

Fain criticized the layoff announcement Friday. In a statement, he said taxpayers, workers and consumers have invested in Stellantis and “it’s time for Stellantis to invest in us.” He argued that Tavares mismanaged the company and failed to show his commitment to the American auto worker.

“We continue to review options for the Warren Truck,” Stellantis spokeswoman Jodi Tinson said in an email Tuesday.

Graham said meetings with the company’s management, as well as its members, are scheduled for later this week.

SHAP quality issues

Tavares told reporters last month that some U.S. plants, including SHAP, have too low a direct operating rate. That means too many trucks needed repairs after the fact, which increases costs, delays vehicle shipments and can lead to other quality issues, said the CEO, who is expected to visit the plant this month.

“When you do a repair off the main line, you can always fix what you need to fix but create another problem,” Tavares said.

Between the run rate issue and other headaches at U.S. plants involving suppliers that have led to plant closures — as well as product mix issues where production of certain makes and models didn’t align with demand — Tavares said he was a “painful” time for him. American manufacturing operations.

“SHAP is the primary location for Ram 1500 production, and we continue to work with the union and our workforce to improve production there,” Tinson said.

Spencer, the local union leader, acknowledged the plant has faced challenges since rolling out the 2025 Ram 1500 earlier this year. A common problem was with the truck’s electrical systems, he said, including wiring and modules. At one point, there was a “significant amount” — several thousand — of pickup trucks waiting to be fixed, he said.

But Spencer, who worked at the plant for 24 years, said the blame was wrongly placed on the plant itself and the workers.

“It all comes down to engineering and supplier issues,” he said, adding he believes Tavares wants to build a case to send more Ram production to Mexico once the current contract ends. Spencer and other union officials recently established. their SHAP concerns — from electrical component issues to concerns about manufacturing in Mexico — on a podcast that’s aimed at members, but has also drawn attention elsewhere.

“They have the plant in Mexico — we know they have cheaper wages, we know their safety regulations are a little more lax,” Spencer said.

The union leader said he wants to work with the CEO to resolve the issues and secure the long-term vehicle at the plant. But he said there’s nothing fundamentally wrong with the workforce that built a pickup that won multiple MotorTrend Truck of the Year awards.

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Warren Truck layoffs heighten fears Ram production will move to Mexico

“Down the street from SHAP”

SHAP quality issues

By Matthew. Jr

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