In a recent investor meeting, Stellantis CEO Carlos Tavares unveiled a 30% cost-cutting strategy aimed at bolstering the company's competitiveness against Chinese automakers. The move is expected to result in considerable job losses, particularly at the Auburn Hills, MI, office tower.
The cost-reduction plan targets operational efficiencies and cost competitiveness. "We have at least two plants that need a significant turnaround, at least two," Tavares said. European plant managers will be brought in to oversee the changes.
A key component is the "EV first strategy," designed to streamline operations and focus on EV production. "By the way, when we compare to Leapmotor [a Stellantis-owned Chinese auto manufacturing startup], those 30% cost-competitive edge is what I'm always talking about," Tavares noted.
Auto analyst John McElroy told Local 4 that Tavares' approach is taking an "axe" to the company's expenses. "The old Chrysler group as we know it in Auburn Hills is going to be a mere shadow of itself in just a couple of years," he said, predicting substantial layoffs. McElroy estimated thousands of jobs could be at risk as Stellantis moves to outsource engineering to lower-cost countries like Turkey and Morocco.
The potential sale of the Auburn Hills headquarters building looms as Stellantis reduces its need for extensive office space.
"The tower almost undoubtedly will be up for sale," McElroy said.
Stellantis Media Relations was not available for further comment, but industry insiders suggest the layoffs could begin as early as July.
