The leadership team at Stellantis has faced an onslaught of scrutiny after the automaker’s lackluster performance so far this year – underscored most recently by a 20% Q3 drop in U.S. sales.
And as one part of its strategy to cut costs and improve margins, Stellantis will reportedly sell off a facility in Yucca, Arizona.
Getting the ax is the company’s Arizona Proving Grounds, a 4,000-acre site Stellantis uses for testing. Purchased in 2007 from Ford Motor Company, the grounds include areas to review and assess vehicle dynamics, durability, noise, vibration and thermal limits, and includes 100 lane miles of road surface.
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According to reports, Stellantis plans to shutter this facility before the end of the year and, ultimately, sell it – though little is known about who the buyer might be, or if a buyer exists at this point at all. What we do know is that the site currently employs 41 people, dozens of whom are represented by the UAW.
It’s possible that the Arizona employees will be placed on indefinite layoff “which would entitle them to pay and benefits for two years.” Carscoops says some may be transferred to other facilities. Notably, Stellantis has another proving ground in Chelsea, Michigan which it plans to keep in order to carry out tests.
CNBC said in a report that testing grounds like Yucca are costly to operate, which is the reason Toyota opened up its own Arizona grounds beginning in 2021, allowing other companies to use it for “long term engagements.” Stellantis will reportedly take advantage of this setup, which is about 170 miles southeast of the Yucca proving grounds.
Stellantis paid $35 million for the compound and says closing and selling it will “improve efficiency.” As part of a larger review of the company’s footprint, Stellantis last year provided the UAW with a list of 18 facilities it might consolidate or close. According to CNBC, the status of the other properties “was not immediately clear.”
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