Stellantis Selling Its Massive Arizona Proving Grounds

It will end operations at the 4,000-acre facility by the end of the year.

Stellantis Proving Grounds For Sale

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Christopher Smith

By: Christopher Smith

Oct 21, 2024 at 4:15pm ET

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Stellantis will cease operations at its large proving grounds near Yucca, Arizona by the end of 2024.
The company's proving grounds in Chelsea, Michigan will remain open and active.
It's unclear if there are any buyers interested in buying the 4,000-acre facility.

It's no secret that Stellantis isn't having a great year. Nor is it a secret that its North American brands under Fiat Chrysler Automobiles are feeling pressure to turn things around. Now, they will have to do it without the use of the Arizona Proving Grounds, a 4,000-acre testing facility that Chrysler purchased way back in 2007.

It's unknown if a buyer is already lined up for the proving grounds, which specializes in hot-weather testing. According to CNBC, Stellantis will end operations at the facility by the end of the year. A company spokesperson confirmed the news to Motor1, providing the following statement in an email:

"Stellantis continues to look for opportunities to improve efficiency and optimize its footprint to ensure future competitiveness in today’s rapidly changing global market. As agreed to during 2023 UAW negotiations, the Company is continuing to market the Arizona Proving Grounds for sale and therefore, will cease use of the facility by the end of the year.

The Company is working with the UAW to offer proving ground employees special packages or they can choose to follow their work in a transfer of operations. Alternatively, employees could be placed on indefinite layoff which would entitle them to pay and benefits for two years."

According to statistics published by Stellantis, the Arizona Proving Grounds currently employs 69 people and has 70 lane miles of roadway. Aside from hot-weather testing, the location is good for vehicle evaluations in dusty climates and is home to an 18-acre vehicle dynamics area, among many other things.

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The sale won't leave FCA without any testing facilities in North America. The Chelsea Proving Grounds west of Detroit has served Chrysler through its various iterations for decades. It began operation in 1954 and matches the Arizona facility in size at 4,000 acres. A total of 85 percent of vehicle testing for FCA takes place at Chelsea, though its northern location is not well suited for high-temperature scenarios. For that, CNBC reports the company will use another Arizona location owned by Toyota.

As for other Stellantis properties, there are still several locations that could close down before all is said and done. That includes FCA's 500-acre headquarters located north of Detroit in Auburn Hills.

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Source: Stellantis via CNBC

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