Stellantis closing its Arizona Proving Grounds

The Arizona Proving Grounds in Yucca were until recently considered essential to developing and testing cars under high-heat conditions. Now, the 4,000-acre facility in Arizona is being cut to save money in the short term, though long-term costs in recalls and warranty claims may prove to be higher.

Stellantis was still profitable, especially in North America, through the end of the last quarter, but has heavily invested in a Chinese automaker, an experimental VTOL company, and stock buybacks while giving buyouts to thousands of engineers, professionals, and managers. CEO Carlos Tavares continues to talk in public about how quality remains important to the company, between comments about cutting costs and blaming other parties for slowing sales.