Stellantis plans to close and sell its 4,000-acre vehicle proving grounds in Arizona by the end of the year as part of ongoing cost-cutting measures under CEO Carlos Tavares.

This move comes amid pressure from Wall Street, dealers, and the United Auto Workers (UAW) union due to the company’s poor financial performance and layoffs.

The proving grounds, used for vehicle testing since Chrysler purchased the site in 2007, will be replaced by facilities owned by Toyota starting next year.

Stellantis is working with the UAW to provide options for affected employees, including transfer packages or potential indefinite layoffs with benefits, CNBC has reported.

The automaker has reduced its U.S. workforce by 15.5% since 2019, outsourcing engineering jobs to lower-cost countries to cut costs.

Written by B.C. Begley