My contacts working there say it came as a total shock to them. No warning or signs. Probably all the programs would come to a halt of half of the employees actually left.
I don’t think this company has much life left in it and the unions are seemingly also in denial of that.
Oh, you want a union? Fine, we’ll just fire half of you when all is said and done. And then lie about profits.
These workers aren’t in the union tho
No S*** Sherlock, they have to pay the “UNION” guys more, so they’re cutting non-union guys go to make up the difference.
Thanks UAW 🤗 when you win, we all win don’t we?
I hope all new auto manufacturing investment steers clear of Detroit and goes entirely to the sun belt.
This isn’t new. The OEMs have been doing this for a while. Expect Ford to follow shortly thereafter and birch to their suppliers about the need to cut cost.
Not surprising at all. Stellantis has become the modern version of AMC (American Motors). I’ve been telling people for months I expect Stellantis to liquidate assets in 2024-2025. Stellantis is losing too much money to justify continued vehicle production. Their huge price increases over the past few years made it worse. Stockholders can get the best return by selling everything off in pieces to the highest bidders. The Jeep, Dodge, and RAM brand names are worth megabucks.
…what in their company financials suggest your statements? Genuine question , no trolling.
Seriously. OP’s comment made me check their numbers out of curiosity, and their 1H 2023 results look pretty good to me
How do you figure Stellantis has been losing too much money when they have had higher profits than GM and Ford over the past few years?
Won’t be an immediate sign for trouble - hell, GM and Ford did similar last year. But this is not good, and Stellantis US needs to get their shit together before the Euro side of the family pulls funding and/or sells off Jeep and Ram for profit. They need the new Charger on the road and fast.
I’m curious if they start cutting brands from the US market soon.
Ram and jeep are like 75%+ of sales then Dodge has like a little chunk.
Alfa, Fiat, Chrysler, Maserati all don’t sell for shit here. Hell Chrysler is down to one car lol.
Yeah, the writing has been on the wall for a while now, that they will have to consolidate names/brands.
That’s what I’m thinking. Chrysler barely sell anything outside the US so they would be killing the brand off. Big move if so. Alfa, Fiat and Maserati will continue in Europe and Asia.
Maserati seems to be doing just fine. They aren’t a big volume brand but they have pretty loyal buyers. The new Folgore stuff is pretty cool. I just drove the 24 GranTurismo last week. Depreciation aside of course lol
Remember when Mitsubishi did this and more than half their workforce tried to take the up on it.
Buy 20% of leapmotors for 1.5 billion and integrate none of the tech in your product lines, just sell cheap chinesium thru your current dealer network.
Fire 6500 american white colar employees.
Yeah stellantis is running into the ground I think
Well that’s what happens when you stop making the only 2 cars anyone liked, challenger and charger, while the rest of the lineup gets neutered, is overpriced, and still as unreliable as ever.
This is how they will deal with the Unions, mass layoffs and adding more robotics. Great Job UAW, every year their workers pool will get smaller. I feel bad for them.
Yeah a lot of the non union salary employees will be replaced by AI. That’s a given across the entire economy. This article has nothing to do with uaw hourly or salary workers though.
How awesome would it be if someone competent bought Jeep!?
I don’t think anyone is surprised by this. Stellantis has been dragging its feet for the past decade while the entire industry passes them by. All of their affordable/economy options are hot dumpster trash and their flagships are crowding dealership lots right now.
This tactic is called “short fill”. You indicate that downsizing is coming, offer a generous buyout plan, some of the older(higher paid) employees take the deal. Result 10-15% overall workforce shrink, followed by replacement hiring of younger(lower paid) people to fill openings as they occur. Lower overall labor cost, increase profits, bingo.
You know, when FCA merged with Peugeot I thought the US jobs would be safer than our counterparts in Europe, given the fact that Peugeot and Fiats main segments and markets overlap, while the US market is very different.
What I hadn’t considered was that the French and Italian governments both had a very high interest (and some say) in keeping jobs in their home countries.