A multinational automaker laid off more than 2,000 American workers in August after benefiting handsomely from the Biden administration’s subsidies for electric-vehicle production.
Stellantis, the parent company to famous brands like Ram and Jeep, has been awarded hundreds of millions in grants from the federal government to promote its EV manufacturing. But the Biden administration’s largesse has not prevented the company from laying off American workers.
In July, the Department of Energy awarded Stellantis subsidiary Chrysler a $334.8 million grant to convert a shuttered Illinois plant into a facility for building EVs and another $250 million grant to make a transmission plant in Indiana suitable for manufacturing EV parts. Negotiations between the Department of Energy and grant awardees will take place to ensure the companies meet certain requirements for supporting workers and communities.
National Review has reached out to Stellantis and the Department of Energy for comment.
Unlike its competitors, Stellantis has begun to turn a profit on electric vehicles, and will continue moving full-steam ahead with its electrification process. Ford has suffered billions worth of losses on its electric vehicle fleet and in August announced plans to adjust its electrification strategy to lower costs.
Stellantis is set to lay off more than 2,000 workers at a plant outside Detroit to wind down its production of the classic Ram 1500 truck. The plant, located in Warren, Michigan, will continue to be equipped for Jeep Wagoneer production on a one-shift production pattern. Laid off union workers will receive supplemental unemployment benefits and transition assistance for the next year.
As Stellantis shifts towards electrifying its fleet, the company has threatened to move Ram 1500 production from another plant outside Detroit to Mexico, United Auto Workers vice president Rich Boyer said last month with contract negotiations ongoing between the two sides.
“Product allocation for our U.S. plants will depend on the outcome of these negotiations as well as a plant's ability to meet specific performance metrics including improving quality, reducing absenteeism and addressing overall cost,” the company told CNBC.
The Sterling Heights, Michigan plant is used for manufacturing the Ram 1500 Tradesman truck and it would be converted to a production facility for an all-electric Ram vehicle, potentially threatening union jobs.
The Biden administration’s goals of promoting labor unions and electric vehicles came into tension last year when the United Auto Workers staged a prolonged strike against the big three automakers over their shifts to electric vehicles and other issues related to benefits and compensation.
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