12:17 PM EDT, 10/18/2024 (MT Newswires) -- Stellantis ( STLA ) intends to close and sell its large vehicle proving grounds in Arizona by the end of this year as part of cost-cutting measures, CNBC reported Friday, citing the company.

This decision is part of a broader cost-cutting strategy under CEO Carlos Tavares, who faces pressure due to the company's declining financial performance, the report said.

The Arizona Proving Grounds span over 4,000 acres between Phoenix and Las Vegas in Yucca, Arizona, the report added.

Stellantis ( STLA ) plans to use Toyota Motors' (TM) proving grounds in Arizona, the report added, citing two people familiar with the decision.

The company is collaborating with the UAW to provide proving ground employees with special packages, or they can opt to transfer to other operations. However, employees may also face an indefinite layoff, which would grant them pay and benefits for two years, Stellantis ( STLA ) reportedly told CNBC.

Stellantis ( STLA ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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