Amidst a rapidly shifting global auto market and the ongoing transition to electric vehicles, Stellantis, the parent company of Jeep, has announced plans to lay off an unspecified number of workers at its U.S. factories in the coming months. This move comes as the company grapples with increased capital spending associated with the transition from gasoline-powered vehicles to electric autos. In the first quarter of this year, Stellantis reported a decline in U.S. sales and higher costs stemming from a new contract agreement with the United Auto Workers union. Stellantis employs approximately 43,000 factory workers. The company’s statement emphasizes that these actions are intended to enhance productivity and ensure long-term sustainability in a rapidly evolving global market. While Stellantis declined to provide specific details regarding the timing or reasons for the indefinite layoffs, Automotive News reported on Monday that 199 full-time workers were laid off at Stellantis’ Ram pickup truck factory in Sterling Heights, Michigan, north of Detroit. Additionally, there have been layoffs of some white-collar workers this year. Stellantis CEO Carlos Tavares has stressed the necessity of global cost-cutting initiatives to maintain the affordability of electric vehicles for the middle class. He emphasizes that electric vehicles currently cost approximately 40% more than gasoline-powered vehicles. Without cost reductions, Tavares believes that electric vehicles will remain too expensive for the middle class, potentially shrinking the market and further escalating costs. Stellantis reported a nearly 10% decline in vehicle sales from January through March compared to the same period last year.
Stellantis Announces Indefinite Layoffs at U.S. Factories
