The ongoing strike by the United Auto Workers (UAW) has expanded to include Chrysler-parent Stellantis's largest assembly plant, impacting the production of the profitable RAM 1500 pickup truck. This marks a significant escalation of the strike, which began on September 15 and now involves more than 40,000 union members at Ford, General Motors, and Stellantis. The UAW is seeking better wages, retirement benefits, and other changes in contract negotiations with the automakers. The strike's impact on the automotive industry and the wider economy continues to grow.
Jeep maker Stellantis is laying off about 400 white-collar workers in the U.S. as it deals with the transition from combustion engines to electric vehicles. The workers are mainly in engineering, technology, and software at the headquarters and technical center in Auburn Hills, Michigan. The cuts, effective March 31, amount to about 2% of Stellantisā U.S. workforce in engineering, technology, and software. CEO Carlos Tavares has said that electric vehicles cost 40% more to make than gasoline vehicles, and the company will have to cut costs to make EVs affordable for the middle class. Stellantis plans to launch 18 new electric vehicles this year, increasing its global EV offerings by 60%. The layoffs come after crosstown rivals Ford and General Motors also cut thousands of white-collar jobs due to the transition to electric vehicles.
Chrysler parent Stellantis is laying off about 400 U.S. salaried workers, representing 2% of those jobs worldwide, effective March 31. The company aims to cut costs, boost efficiency, and ramp up electric-vehicle production plans. Stellantis offered buyouts to U.S. workers last year and plans to offer at least 25 battery-electric models in the United States by 2030. Both Ford Motor and General Motors have also cut costs and jobs recently. United Auto Workers President Shawn Fain criticized Stellantis for terminating 2,000 temporary workers, calling it 'corporate greed.'
Chrysler's parent company, Stellantis, plans to lay off 400 paid employees in the US due to challenges in the automotive industry, including supply chain delays, economic difficulties, and changing customer preferences. The layoffs reflect the need for businesses to adapt to shifting market conditions. Stellantis, formed through the merger of Fiat Chrysler Automobiles (FCA) and PSA Group, is focusing on electric and environmentally friendly transportation. However, automakers still face issues such as rising input costs and supply chain disruptions. The car industry is undergoing significant changes driven by consumer preferences, regulatory reforms, and technological advancements. Automakers like Stellantis are rethinking their workforce strategy and investing in electric and driverless cars, digital platforms, and connectivity features. Stellantis' decision to lay off employees is part of a larger strategic realignment to optimize costs and streamline operations. To stay competitive, automakers must remain adaptable and innovative in the face of market uncertainties.
Stellantis, the parent company of Fiat, is expected to announce a hybrid version of its 500e electric car to be produced at its Mirafiori plant in Italy. The announcement is expected at a meeting between CEO Carlos Tavares and unions in Turin. The move may help improve Stellantis' relations with the Italian government, as the company and the government are in talks to restore the group's production in Italy to one million vehicles by the end of the decade. The new hybrid 500e could start production no earlier than late 2025, with a target annual output of 200,000 500s in Mirafiori, including 125,000 hybrids. [5d37a9a9]
Gov. Gretchen Whitmer attended a ribbon cutting ceremony in East Lansing to celebrate the opening of ATESTEO's new drivetrain plant. The international drivetrain company invested $27.8 million in the local economy and created 46 jobs. Michigan was chosen over Ohio and South Carolina due to its strong automotive industry. ATESTEO North America, a subsidiary of ATESTEO Group, provides testing services for hybrid and fully electrified auto drivetrains and components.