GM, Stellantis to close 2 Arizona proving grounds

YUMA, AZ (AZFamily) — Two of the largest U.S. automakers announced the closure of two former testing facilities in Arizona amid significant restructuring and layoffs in recent weeks.

The auto industry is facing a significant decline in sales amid increased competition from Asian automakers, persistent inflation and a strained supply chain.

General Motors (GM) and Stellantis have announced restructurings and layoffs in recent weeks, including at their two plants in western Arizona.(az family)

GM Desert Proving Grounds closes in Yuma

GM announced Friday that it was laying off about 1,000 workers worldwide to try to cut costs in a tumultuous industry in recent years.

Although the layoffs were widely reported as affecting “primarily white-collar workers,” Arizona Family has learned that these impacts affected Yuma County, leading to the layoff of 33 workers at GM’s Desert Proving Grounds .

Aerial view of the Yuma Desert Proving Ground campus, including a 3.1-mile-wide road, circular loops, dynamic platforms and other tests,(General Motors)

“In order to win in this competitive market, we must optimize for speed and excellence. That means operating efficiently, ensuring we have the right team structure and focusing on our top priorities as a company,” said Kevin Kelly, senior director of corporate relations at GM.

Last April, the Associated Press reported that about 5,000 GM white-collar workers at General Motors had accepted buyout offers, which the automaker said at the time was enough to avoid layoffs.

GM has about 150,000 employees worldwide, the vast majority of whom are in Warren, Michigan, a suburb of Detroit. According to the AP, the company had 76,000 white-collar workers worldwide at the end of last year.

At the time, GM said it could not completely rule out layoffs in the future, saying “involuntary separations are not contemplated at this time.”

Stellantis Sells Mohave County Facilities

In late September, Stellantis, the world’s fourth-largest automaker, said it was working to turn around the North American market.

Recent financial results have shown dire conditions, likely due to oversupply, poor pricing and lingering labor concerns. The company said it expects to end 2024 with negative cash flow of about $11 billion.

Stellantis’ third-quarter profits plunged 27% as it struggled to clean up high U.S. inventories. Additionally, the company reported that its revenue in all regions except South America saw double-digit declines.

Arizona’s Family has confirmed with the automaker that its Arizona proving grounds are up for sale as part of a cost-cutting measure.

According to CNBC, the land covers about 4,000 acres in Yucca, Arizona, since Stellantis purchased it from Ford in 2007 for $35 million.

FILE – The Stellantis sign is seen outside the Chrysler Technology Center in Auburn Hills, Michigan, January 19, 2021.(AP Photo/Carlos Osorio, file)

“The company is working with the UAW to offer Proving Grounds employees special packages or they can choose to follow their work under a transfer of operations. Alternatively, employees could be placed on indefinite unemployment, which would entitle them to wages and benefits for two years,” Jodi Tinson, a spokesperson for Stellantis, said in a statement with the family of ‘Arizona.

As part of the changes, CNBC reported that the automaker plans to use Toyota’s proving ground in Wittman, Arizona, about 45 miles northwest of the Phoenix metro area.

“Stellantis continues to seek opportunities to improve its efficiencies and optimize its footprint to ensure its future competitiveness in today’s rapidly evolving global marketplace,” Tinson said.

Last week, Family’s Arizona, Ohio sister station WTVG reported that about 1,100 workers had been laid off at a Jeep factory in Toledo.

“It’s been a year full of surprises,” said Kirk Hoddinott, a factory worker. “It’s later in life to start a new career, and the idea of having to start a new career now is not a warm feeling at all.”

In Italy, a Stellantis executive said the company had no plans to close factories there, although Italian auto production is at its lowest level in more than 60 years, Reuters reported.

Market analysts see a potential rebound in the auto market as retail sales continue to rise from 2023 and auto loan rates begin to fall in early 2025. But for General Motors and Stellantis, signs of a turnaround were too late to be avoided. job cuts.,

The Associated Press contributed to this report.

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