Stellantis CEO Carlos Tavares

Auto manufacturer Stellantis plans to close and sell its large automotive test site in Arizona by the end of this year.

This decision is the latest cost-cutting measure taken under the leadership of the company's CEO Tavares (Carlos Tavares). Due to poor financial performance, layoffs, and overall business decisions, Tavares is facing increasing pressure from Wall Street, dealers, and the United Auto Workers union.

The Arizona test site is located on 4000 acres between Phoenix and Las Vegas in Yuma, Arizona. In 2007, Chrysler bought the property from Ford Motor for $35 million and has since been used for automotive testing and development.

Stellantis confirmed the news of the closure on Friday morning, citing cost-cutting and real estate assessment as the reasons.

"Stellantis will continue to seek opportunities to enhance efficiency and optimize its footprint to ensure competitiveness in today's rapidly changing global markets."