Stellantis, the prominent automaker, has announced it will shut down and sell its extensive automotive proving grounds in Arizona by the end of the year. This decision is part of a strategic cost-cutting initiative led by CEO Carlos Tavares, aimed at improving the company’s financial health amidst pressure from Wall Street, dealers, and the United Auto Workers union.
Located between Phoenix and Las Vegas in Yucca, the Arizona test site spans 4,000 acres. It was originally acquired by Chrysler from Ford for $35 million in 2007 and has since been a key location for vehicle testing and development. Stellantis confirmed the closure, citing ongoing cost-cutting efforts and a real estate assessment as reasons for this move.
The company emphasized its commitment to exploring ways to enhance efficiency and optimize its operations to remain competitive in the rapidly changing global market.
