Mega Auto giant Stellantis Sells Off Its Epic Arizona High-Tech Testing Facility

Automakers’ Cost-Cutting Measures: Stellantis Shuts Down Arizona Proving Grounds

Saving money is a goal we all strive to achieve, but the way automakers do it is certainly a unique story. On one end, you have companies like Volkswagen Group, which saves millions by banning non-Porsche executives from leasing Porsche cars. On the other end, Stellantis takes a different approach by shutting down an entire R&D facility.

Stellantis Shuts Down Arizona Proving Grounds

According to a recent report by CNBC, Stellantis will be closing its Arizona Proving Grounds by the end of the year. This 4,000-acre facility in Yucca, Arizona, has a rich history of testing and training, and has even been used for spy shots. The facility was originally used as a gunnery school and pilot training facility by the U.S. military, and was later sold to Ford in 1954. Chrysler acquired it in 2007 for $35 million, and it has played a significant role in the development of performance vehicles like the Ram 1500 TRX.

Impact on Employees and R&D Operations

The facility currently employs 41 people, 37 of whom are represented by the United Auto Workers (UAW). While the UAW has been vocal about the closure, it’s not news to them, as it was discussed during last year’s contract negotiations. Stellantis will be transferring its hot-weather testing and other R&D operations to Toyota’s proving grounds in Wittman, Arizona, which is about an hour’s drive northwest of Phoenix. Toyota’s facility, built in 2021, is larger than Stellantis’ facility and can accommodate a broader range of testing and development activities.

Global Cost-Cutting Measures

Stellantis CEO Carlos Tavares has been driving global cost-cutting measures. In the U.S., he has reduced the headcount by 15.5%, or about 47,500 employees, since December 2019. More layoffs are likely on the horizon, as Tavares continues to streamline the company’s operations. His departure in 2026 may also lead to a new direction for the company.

Shrinking Product Portfolio

Stellantis’ shrinking product portfolio no longer includes the 300, Challenger, Cherokee, or Renegade for the U.S. market. Tavares has been dismissive of offers to buy out certain marques, such as Chrysler and Maserati, instead giving brands a couple more years to shape up or ship out. However, he has also been known to backtrack on his plans, so only time will tell what the future holds for these brands.