Automaker Stellantis plans to close and sell its massive automotive proving ground in Arizona by the end of the year. The decision is the latest cost-cutting measure taken under the leadership of CEO Carlos Tavares. Tavares has come under increasing pressure from Wall Street, dealers and the United Auto Workers because of the company's poor financial performance, layoffs and overall business decisions.
Stellantis CEO Carlos Tavares
The Arizona Proving Ground is located on 4,000 acres between Phoenix and Las Vegas in Yucca, Arizona. Chrysler bought the property from Ford Motor Co. in 2007 for $35 million and has used it for vehicle testing and development ever since.
Strantis confirmed the closure Friday morning, citing ongoing cost reductions and property reviews.
"Strantis will continue to look for opportunities to improve efficiency and optimize its footprint to ensure future competitiveness in today's rapidly changing global marketplace," the company said.