CEO Carlos Tavares of Stellantis NV announced the closure and sale of the company’s large vehicle proving grounds in Arizona by the end of this year. The decision is part of cost-cutting measures undertaken by the automaker, which has been facing financial challenges, layoffs, and overall business decisions.
The Arizona Proving Grounds, spanning 4,000 acres in Yucca, Arizona, has been used for vehicle testing and development since Chrysler acquired it from Ford in 2007. Stellantis plans to shift its operations to a proving grounds owned by Toyota Motor in Arizona starting next year.
Stellantis confirmed the closure, stating that it is part of ongoing efforts to improve efficiency and optimize its operations. The company is working with the United Auto Workers (UAW) to provide special packages to employees at the proving grounds.
Stellantis has been reducing its workforce and outsourcing engineering efforts to lower-cost countries. The automaker has significantly decreased its U.S. employee headcount in recent years, with plans to consolidate operations and potentially close other facilities in the future.