Stellantis NV will close its 4,000-acre Arizona vehicle testing site by the end of the year as part of ongoing cost-cutting measures amid declining sales.
Stellantis NV has announced the closure of its 4,000-acre Arizona Proving Grounds by the end of this year as part of its ongoing cost-cutting measures.
The company confirmed the decision on Friday, citing efforts to streamline operations and increase efficiency, CNBC reported.
According to Stellantis spokesperson Jodi Tinson, the facility, located in Yucca, Arizona, is being marketed for sale, and the automaker plans to discontinue using it after the year ends.
Stellantis Shifts Arizona Testing to Toyota Facility
The Arizona Proving Grounds, acquired by Stellantis in 2007, features 70 lane miles for vehicle testing. This decision aligns with agreements reached during the 2023 United Auto Workers (UAW) negotiations. The closure comes amid broader cost-reduction efforts by Stellantis, which has faced a significant decline in US sales, including a 20% drop in the third quarter of this year.
Stellantis plans to transition to a different testing facility in Arizona, owned by Toyota, starting in 2025. In addition to the Yucca facility, Stellantis operates another major proving grounds in Chelsea, Michigan, which will continue to be used.
The company is working with the UAW to provide affected employees with special packages or the option to transfer to other operations. However, some employees may face indefinite layoffs, meaning they would still receive pay and benefits for up to two years.
Stellantis, like many automakers, uses proving grounds to test and develop vehicles in different conditions before they hit the consumer market.
