The decision to lay off workers comes as Stellantis navigates a rapidly evolving global auto market and faces increased capital spending required for the transition from gasoline vehicles to electric autos. The company’s announcement follows reports of declining U.S. sales in the first quarter of this year and additional expenses stemming from a new contract agreement with the United Auto Workers union. Stellantis employs approximately 43,000 factory workers, and while the company did not specify the number or timing of the impending layoffs, Automotive News reported that 199 full-time workers were laid off at the Ram pickup truck factory in Sterling Heights, Michigan. The company has also laid off some white-collar workers this year. Stellantis CEO Carlos Tavares has emphasized the need to reduce costs globally to maintain the affordability of electric vehicles for the middle class, highlighting that EVs currently cost approximately 40% more than gasoline-powered vehicles. Without cost reductions, Tavares believes EVs will remain too expensive for the middle class, potentially shrinking the market and further driving up costs.
Stellantis to Lay Off Workers at U.S. Plants Amidst Market Changes and EV Transition
