YUMA, AZ (AZAfamily) — Two of America’s largest automakers announced they will close two former testing facilities in Arizona amid significant restructuring and layoffs in recent weeks.

The auto industry is facing a significant decline in sales due to increased competition from Asian automakers, persistent inflation and tight supply chains.

GM’s Desert Proving Ground in Yuma is closing

GM announced Friday that it will lay off nearly 1,000 workers worldwide as it tries to cut costs for an industry that has been through turbulent times in recent years.

Although the layoffs were billed as largely affecting “mostly white-collar” workers, Arizona Family learned that the impacts impacted Yuma County, leading to the layoffs of 33 workers at GM’s Desert Proving Ground.

“To win in this competitive market, we need to optimize speed and excellence. This includes working efficiently, having the right team structure and focusing on our top priorities as a business,” said Kevin Kelly, GM’s senior director of corporate affairs.

Last April, the Associated Press reported the hiring of nearly 5,000 GM white-collar workers at General Motors. purchase offersThe automaker said at the time that this was enough to avoid layoffs.

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

At the time, GM stated that it could not completely rule out future layoffs and that “involuntary separations cannot be considered at this stage.”

Stellantis sells facilities in Mohave County

In late September, Stellantis, the world’s fourth largest automobile manufacturerHe said he was working to turn the North American market around.

Recent fiscal earnings showed challenging conditions, likely driven by oversupply, poor pricing strategy and ongoing labor concerns. The company reported that it is expected to complete 2024 with growth. Approximately $11 billion in negative cash flow.

Stellantis’ third-quarter earnings fell 27% as it struggled to clear high inventories in the United States. Additionally, the company reported that revenues fell in double digits in all regions except South America.

Arizona Family has confirmed with the automaker that Arizona Proving Grounds is being offered for sale as part of a cost-cutting measure.

The land covers approximately 4,000 acres, according to CNBC. Yucca, ArizonaSince Stellantis bought it from Ford in 2007 for $35 million.

“The company is working with the UAW to offer special packages to field workers, or they can choose to follow their work through the transfer of operations. Alternatively, employees can be placed on indefinite layoffs, which will entitle them to pay and benefits for two years,” Stellantis said. spokeswoman Jodi Tinson said in a statement to Arizona Family.

As part of these changes, CNBC reported that the automaker plans to use: Toyota’s proving grounds in Wittman, ArizonaIt’s about 45 miles northwest of metro Phoenix.

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

Last week, Arizona’s sister station WTVG in Ohio reported: Jeep factory in Toledo cuts 1,100 jobs.

“It’s been a year full of surprises,” said Kirk Hoddinott, who works at the factory. “Starting a new career is later in life, and the thought of starting a new career now is not a warm feeling.”

A Stellantis executive in Italy said that although Italian vehicle production has fallen to the lowest level in the last 60 years, the company does not intend to close any facilities in that country. 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, it was too late to avoid signs of a turnaround. layoffs.,

The Associated Press contributed to this report.

See a spelling or grammatical error in our story? To report this please click here.

Do you have a photo or video of breaking news? To send us here with a brief explanation.

Copyright 2024 KTVK/KPHO. All rights reserved.