Stellantis to sell, shutter large proving grounds testing facility amid cost-cutting efforts

Core Insights - Stellantis plans to close and sell its large vehicle proving grounds in Arizona by the end of this year as part of ongoing cost-cutting measures under CEO Carlos Tavares [1][2] - The Arizona Proving Grounds, covering 4,000 acres, has been utilized for vehicle testing since Chrysler acquired it for $35 million in 2007 [1] - The decision comes amid pressure from Wall Street, dealers, and the United Auto Workers union due to Stellantis's lagging financial performance and layoffs [1] Company Actions - Stellantis will transition to using a proving grounds owned by Toyota Motor starting next year, which was opened for other companies in 2021 [2] - The company confirmed the closure citing ongoing cost-cutting and real estate evaluations, emphasizing the need to improve efficiency and optimize its footprint [2] - Stellantis is working with the UAW to provide special packages for affected employees or options to transfer, although some may face indefinite layoffs with pay and benefits for two years [2]