With the Democratic National Convention kicking off on August 19, the 2024 U.S. Presidential election season is in full swing.
Vice President Kamala Harris is expected to accept her party’s nomination at the United Center in Chicago, but in the meantime, Vice Presidential hopeful JD Vance has been trying to make the case for the opposing Trump-Vance ticket since hitting the campaign trail in July.
Related: Trump’s VP pick is the EV industry’s worst nightmare
The current vice president and Democratic presidential hopeful has been a key focus of the attack on Vance and Trump. Still, at a recent rally in the battleground state of Michigan, Vance made a questionable statement that put Kamala Harris in his direct firing line.
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Is Kamala to blame for Stellantis’ cuts?
According to a Bloomberg report, the Vice Presidential hopeful blamed Stellantis’ (STLA) decision to enact layoffs for 2,450 workers at its Warren Truck assembly plant in the Detroit area.
“Just a few days ago, Stellantis announced that it was going to permanently cut nearly 2,500 proud Michigan auto workers who make the iconic Ram 1500,” Vance said at an August 14 rally near Grand Rapids, Michigan. “Kamala has done nothing.”
“When American businesses threatened to shut down factories and move them to Mexico and China, remember what Trump did? He picked up the phone and said, ‘If you do that, I’m going to introduce you to a little word called the tariff.’”
Stellantis is going through the wringer
If Stellantis’ recent first-half 2024 results are something to base anything on, it would be safe to say that the multinational automaker isn’t doing so great.
During its earnings call on July 24, Stellantis CEO Carlos Tavares reported profit losses of more than 48% compared to the same period in 2023, blaming it on a “challenging industry context” and its own “operational issues” and stated that “significant work […] especially in North America” has to be done “to maximize our long-term potential.”
The “significant work” Tavares implied came to fruition over the past few weeks in the form of aggressive headcount trimming and layoffs.
The “proud Michigan auto workers” that Vance referred to when he put the blame on Harris work at the Warren Assembly Plant, where as many as 2,450 assembly line workers will be laid off following the end of production of the Ram 1500 Classic.
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It is important to note that while the move seems harsh on the surface, Stellantis is ceasing production of a model that does not make them any money.
Introduced in 2019, the 1500 Classic moniker was intended as a way to sell the previous-generation Ram 1500 as a more affordable, bare-bones option. According to Stellantis, actual budget-conscious truck buyers scoffed at the Ram 1500 Classic and tended to lean more toward lower-grade Ram 1500 models like the Tradesman.
“The Ram 1500 Classic has been a great entry point pickup for Ram, and the Tradesman model has well represented the needs of commercial truck customers for years,” Stellantis said in a statement. “We introduced the new 2025 Ram 1500 Tradesman with incredible value and content.”
Additionally, the Warren plant itself is not shutting down. It will shift to a one-shift schedule to focus solely on the $63,000 Jeep Wagoneer SUV, and the automaker states that workers in other operations roles will stay to support the luxury SUV’s production.
Related: Stellantis made a ‘disgraceful’ move at the expense of UAW workers
Not just factory workers
Stellantis’ cuts are not limited to roles on the factory floor; they also affect their offices.
In mid-August, white-collar Stellantis employees below the vice president level will receive individual details of a package called the “2024 Voluntary Separation Program.”
In an email to employees shared with the Detroit Free Press, Stellantis emphasized the program’s importance, suggesting that more layoffs would occur if not enough employees voluntarily accepted their buyout offers.
“We wanted to give you some advance notice so you can thoughtfully consider whether this opportunity might be of interest to you.” Stellantis North America Senior Human Resources and Transformation VP Tobin Williams said.
“As always, we would prefer to meet our strategic headcount objectives through natural attrition and voluntary programs. Transparently, it is important to note that subsequent involuntary actions may be necessary if we do not meet our objectives through voluntary means.”
‘A Disgrace’ that’s not exactly Kamala’s fault
In a statement to Bloomberg, Harris campaign spokesperson Joseph Costello pointed out that more American auto workers were employed than “on even the best day of Trump’s presidency.”
But while the current administration will be put under the microscope, Stellantis’ own moves are not free from criticism.
In a statement to a Fox’s Detroit affiliate, UAW president Shawn Fain noted that the Warren layoffs are another example of corporate greed that punishes ordinary workers like his UAW members.
“Stellantis CEO Carlos Tavares is a disgrace and an embarrassment to a once-great American company. While GM and Ford report fantastic profits and increased sales, Stellantis is going backwards. Meanwhile, Tavares jacks up his own pay by 56 percent while laying off thousands of autoworkers,” Fain said to Fox 2 WJBK-TV.
“The American taxpayer has invested in Stellantis. Workers have invested in Stellantis. Consumers have invested in Stellantis. It’s time for Stellantis to invest in us.”
Stellantis NV, which trades on the New York Stock Exchange as STLA, is up 2.58% from the opening bell, trading at $16.30 at the time of writing.
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