Stellantis plans more layoffs to protect company from 'intense external market conditions'

Stellantis plans more layoffs to protect company from 'intense external market conditions'​

Stellantis (NYSE:STLA) is cutting more jobs as the company struggles in an uneven market and with increased labor costs after a protracted battle with the United Autoworkers union last year. Media sources reported Wednesday morning that the company plans to cut union and seasonal jobs “across its footprint” but did not provide specifics as to which facilities would be impacted.


“This affects many of our U.S. manufacturing facilities, but we are not providing specific details,” a Stellantis (STLA) spokesperson told The Detroit Free Press, adding that, "Stellantis is in full execution mode focused on both protecting the company from the continued intense external market conditions…and will continue to take the necessary actions to improve operations…including implementing indefinite layoffs of represented employees across its footprint.”

The impending job cuts will likely fuel the already combative relationship between the UAW and Stellantis as the company struggles to address a 21% drop in Q2 U.S. car sales. Earlier this month, the UAW filed federal labor charges against Stellantis (STLA) with the National Labor Relations Board for rescinding on commitments that were part of the 2023 agreement. The UAW accuses Stellantis (STLA) of moving jobs out of the country and of failing to reopen the shuttered Belvidere, Illinois facility. While the union has threatened to strike over the issue, Stellantis (STLA) claims the bargaining agreement allows for the company to modify plant openings and closures.

The company has also conducted several phases of workforce reductions, including a buyout option for salaried employees and recently announced another ~2,500 job cuts in Michigan as it phases out production of the Ram 1500 classic truck.

Stellantis (STLA) and the UAW have not responded to Seeking Alpha’s request for comment

https://www.msn.com/en-us/money/com...ntense-external-market-conditions/ar-AA1rbHBA

 

[DILLIGAF]

The only people I feel bad for are the workers

 

[turkeybird56]

Maybe if they quit paying CEO 40 million, hire better QC staff, make more marketable/affordable quality driven vehicles, quit pouring Billions and Billions into silly EV's, and run the US Market correctly not like an Italian Pizza company, and maybe and maybe and maybe lol. But what do I know, just a BOIRD.

DITTO: ref workers.

 

[skates15]

They hiked prices because of too much money chasing too few products during the pandemic. They must have known that the fed would raise rates to squeeze all the money out of the market to reduce inflation post pandemic.

They should have reduced prices after the first or second rate hike so that they could keep inventories in check during a slow down.

And they blame the market, that's rich considering any fool could have predicted that their pricing was unsustainable and vehicles would pile up on the lots.

Stelantis, a Confederacy of dunces.

 

[Docwagon1776]

Cutting their way to growth again?

 

[Hootbro]

Welcome to the reality that 90% of everybody else deals with.

 

[HarryN]

There are some features on these trucks that are pretty interesting.

But if someone wants a $100K truck, they probably aren't going to want it in white.

And the brown interior versions aren't that interesting to me either. Surely they can make a decent looking interior in a color other than white for less than the full premium version.

And if it is all imported parts from China - why would I buy one?

 

[Gary Fields]

“This affects many of our U.S. manufacturing facilities, but we are not providing specific details,” a Stellantis (STLA) spokesperson told The Detroit Free Press, adding that, "Stellantis is in full execution mode focused on both protecting the company from the continued intense external market conditions…and will continue to take the necessary actions to improve operations…including implementing indefinite layoffs of represented employees across its footprint.”

Translation- We F'd up and are making unreliable expensive vehicles that people don't want. We're going to fix this by making more unreliable electric vehicles that people don't want and can't afford, but are very woke.