It’s no secret that Ford rival Stellantis is facing its fair share of problems these days – ranging from industry-high inventory levels to declining sales and profits, union disputes, and a dealer network that simply doesn’t like the direction the automaker is heading in. This has prompted Stellantis to take action in a number of ways, trimming costs and working to right the proverbial ship, moves that will now apparently include selling a proving ground location that was previously owned by Ford.
According to CNBC, Stellantis will close and sell its Arizona Proving Grounds at the conclusion of 2024, which spans 4,000 acres between Phoenix and Las Vegas in Yucca, Arizona. That site has been used as a large-scale testing and development center for the company since the entity formerly known as Chrysler purchased the land from Ford 2007 for a price tag of $35 million, but now, it’s up for sale as just the latest in a series of cost-cutting moves imposed by Stellantis. The company will instead utilize proving grounds in Arizona that are currently owned by Toyota, which that company opened up to rivals in 2021.
Regardless, the existing Stellantis proving grounds employs around 69 people, including some represented by the United Auto Workers union, with which the company is currently doing battle with in court after being accused of unfair labor practices. “Stellantis continues to look for opportunities to improve efficiency and optimize its footprint to ensure future competitiveness in today’s rapidly changing global market,” the company said in a statement. The automaker added that it’s “working with the UAW to offer proving ground employees special packages or they can choose to follow their work in a transfer of operations,” but noted that those employees could be placed on an “indefinite layoff, which would entitle them to pay and benefits for two years.”
In the meantime, Stellantis is reportedly mulling the idea of eliminating some of its 15 brands, and is offering buyouts to help trim its white collar workforce and associated labor costs. The company recently slashed its earnings forecast as well, as it expects to post a negative cash flow of somewhere between 5-10 billion euros ($5.6 billion to $11.2 billion USD) instead of a positive result by the end of 2024.
Comments
Stellantis is in trouble because they refuse to price their vehicles reasonably and reliability is poor. I can’t fathom that a relatively simple market repricing exercise is being overlooked and things like this are happening instead. Automakers are fat and happy with overpricing and they’ve all become totally arrogant.
More like mediocre products first and foremost.
Dodge Hornet? Gimmie a break.
Chrysler Pacifica…pos
RAM can’t move HD and 1500. Finally a modern engine in the 1500.
Jeep Wrangler is as dated as dirt, Grand Cherokee is hanging on a vine, Gladiator weak powertrain. Wagoneer and GW suck better than your wife
It also doesn’t help Stellantis that the labour unions are on strike in Italy. The hits just keep on coming for them. Time to sell the Chrysler side back to the founding family who are very interested right now.