stellantis get ready to new layoffsThe automotive holding company, born from the merger between the Fiat Chrysler Automobiles and PSA groups, has announced new staff cuts in the United States, with a reduction of 400 jobs in Detroit. Cuts hit logistics center Freud Street, which supports operations at the Detroit Assembly Complex, and follows previous reductions at other North American plants. The measure is part of a broader cost containment strategy, in a period that the automotive group defines as “transitional” to prepare for a more stable 2025. The company spokesperson said that the logistics center will be outsourced to a service provider, a decision that will involve the dismissal of 400 permanent employees.
As established by the contract with the union United Auto Workers, affected workers will receive an additional year of unemployment benefits and health coverage for an additional two years.
Stellantis: Layoffs Continue in North America
La Stellantis' crisis in North America seems to have no endThe recent layoffs are not an isolated case, but are part of a series of staff reductions that the company has been implementing for some time in its US plants. Cuts that have particularly affected the sports car and heavy vehicle sectors.
The staff reduction in Detroit follows a few days that of 1.110 workers in Toledo, Ohio, and of 1.100 in Warren, Michigan. The layoffs are part of a cost-cutting plan announced in late August, which included suspending production of the Ram 1500 Classic truck and laying off a total of 2.450 employees.
Behind these choices there is the will to maintain competitiveness in North American markets and to contain expenses at a time when the demand for internal combustion vehicles is being challenged by the growing shift towards electric. Stellantis, like other car manufacturers, is facing radical changes in the sector, aiming for electric and innovative solutions that, however, require reorganizations and sacrifices.
Stellantis – Leapmotor: no production in Poland, looking for alternative location
In Europe, however, there are other problems. Stellantis and Leap motor have decided to review their plans is preferably used for production of the B10 electric crossover, initially planned in the Tychy plant in Poland. The choice to abandon Poland was influenced by the recent Chinese government decision, which banned Chinese automakers from invest in European countries who supported the New EU duties on Chinese electric vehicles. Poland is in fact among the countries that have approved these tariffs of up to 45%.
They look for each other like this more expensive alternatives such as the plant in Eisenach, Germany, and the one in Trnava, Slovakia. It remains to be seen whether production in these countries can, however, make the B10 project compared to Poland.
Stop at Mirafiori, the factory will resume operations in 2025
The crisis does not even spare Italy. Mirafiori plant in Turin, intended for the production of the electric Fiat 500, will suffer a production suspension for the whole of December, with a recovery expected only in start 2025. The decision follows a recent reopening in November, in which Stellantis had concentrated all orders for the electric 500. Difficulties related to the supply of components and a slowdown in demand for electric vehicles have, however, led the company to this new suspension.
Mirafiori, a symbol of the Italian automotive industry, continues to be at the center of an unstable picture that reflects Stellantis' difficult transition to electric. The decision to stop production is part of a complex context, in which electric vehicles face a still evolving market, with high costs and a demand that is struggling to take off.
