Yuma, Arizona (AZ Family) — Amid major restructuring and layoffs in recent weeks, two of America’s largest automakers have announced the closure of two legacy testing facilities in Arizona.
The automobile industry is facing a significant sales slump due to intensifying competition from Asian automakers, persistent inflation, and tight supply chains.
GM’s Desert Proving Ground in Yuma to close
GM said Friday it will lay off about 1,000 employees worldwide in an effort to cut costs in an industry that has been in turmoil in recent years.
Although the layoffs were claimed to primarily affect “primarily white-collar” workers, an Arizona family said the impact would hit Yuma County, where 33 workers were killed at GM’s Desert Proving Grounds. I learned that this led to the layoff of several workers.
“Winning in this competitive market requires optimizing speed and excellence. This includes operating efficiently, ensuring the right team structure, and focusing on our top priorities as a business. ,” said Kevin Kelly, GM Corporate Relations Senior Director.
Last April, the Associated Press reported that about 5,000 GM white-collar employees were laid off at General Motors. purchase offerThe automaker said at the time that this was enough to avoid layoffs.
GM has about 150,000 employees worldwide, the majority of them in Warren, Michigan, a suburb of Detroit. The company had 76,000 white-collar employees around the world at the end of last year, according to the Associated Press.
GM said at the time that it could not completely rule out future layoffs and that “involuntary separations are not being considered at this time.”
Stellantis sells Mojave County facility
Late September, Stellantis, the world’s fourth largest automakerstated that it is working to rebuild the North American market.
Recent financial returns showed a dire situation, likely caused by oversupply, poor pricing strategy, and continued labor unrest. The company reported that it expects to end 2024 with the following results: Cash flow is approximately $11 billion negative.
Stellantis’ third-quarter profit fell 27% as it worked to clear high inventories in the United States. Additionally, the company reported double-digit declines in revenue in all regions except South America.
An Arizona family confirmed to the automaker that the Arizona testing site was put up for sale as part of a cost-cutting measure.
According to CNBC, the site is approximately 4,000 acres in size. Yucca, ArizonaSince Stellantis acquired it from Ford in 2007 for $35 million.
“We are working with the UAW to offer special packages to test site employees, to allow employees the option to take over and transfer operations, or to lay off employees indefinitely. “In that case, employees would receive two years of pay and benefits,” Stellantis spokeswoman Jodi Tinson said in a statement to Arizona Families.
As part of these changes, CNBC reported that the automaker plans to use Toyota’s proving ground in Whitman, Arizona, about 45 miles northwest of metro Phoenix.
“Stellantis continues to explore opportunities to improve efficiency and optimize our footprint to ensure our future competitiveness in today’s rapidly changing global market,” said Tinson. Masu.
Last week, Arizona Family’s sister station WTVG in Ohio reported: Toledo Jeep factory cuts 1,100 jobs.
“This past year has been full of surprises,” said Kirk Hoddinott, a worker at the plant. “You don’t start a new career until much later in life. The thought of having to start a new career now doesn’t give you any warm feelings.”
In Italy, Stellantis executives said they had no intention of closing any factories there, even though the country’s car production is at its lowest level in more than 60 years. Reuters reported.
Market analysts believe the auto market could recover as retail sales continue to increase compared to 2023 and auto loan interest rates begin to decline towards the beginning of 2025. But for General Motors and Stellantis, the signs of improvement came too late to avoid. reduction in personnel,
The Associated Press contributed to this report.
Was there a spelling or grammatical error in your story? Click here to report.
Have a breaking news photo or video? Send it to us that’s for us here Comes with a simple explanation.
Copyright 2024 KTVK/KPHO. Unauthorized reproduction is prohibited.
