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.

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 .

“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 taken repurchase offerswhich, according to the automaker, was enough at the time 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

At the end of September, Stellantis, fourth largest automobile manufacturer in the worldsaid 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 a negative cash flow of approximately $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 approximately 4,000 acres in Yucca, Arizonasince Stellantis bought it from Ford in 2007 for $35 million.

“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 these changes, CNBC reported that the automaker plans to use Toyota Proving Grounds in Wittman, Arizonaabout 45 miles northwest of metro Phoenix.

“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, Arizona’s sister station WTVG in Ohio reported that approximately 1,100 workers cut at 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 any 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.

See a spelling or grammar error in our story? Please click here to report it.

Do you have a photo or video of a news report? Send it’s ours here with a brief description.

Copyright 2024 KTVK/KPHO. All rights reserved.