Auto Giant Stellantis Plans To Cut Hundreds of Workers As Transition To Electric Vehicles
Jose Nino
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On March 22, 2024, carmaker Stellantis announced that it has plans of slashing roughly 400 workers as it has trouble manufacturing electric vehicles (EVs).
The job cuts for Stellantis went into effect on March 31 and largely consist of white-collar jobs at the company’s headquarters and a chemical center in Auburn Hills, Michigan, that spans engineering, technology and software positions. Stellantis has played the waiting game with respect to bringing its electric models to the market. By contrast, competitors such as Ford have incurred $4.7 billion in losses on EVs in 2023.
“As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure,” Stellantis said in correspondence with the Daily Caller. “While we understand this is difficult news, these actions will better align resources while preserving the critical skills needed to protect our competitive advantage as we remain laser focused on implementing our EV product offensive and our Dare Forward 2030 strategic plan.”
On a prior occasion, Stellantis declared that it plans to have all of its sales in Europe be electric and half of sales in the US be electric by 2030. The layoffs comprised only 2% of the company’s engineering, technology and software posts.
Carlos Tavares, Stellantis’s CEO, has previously revealed that EVs currently cost roughly 40% more to produce than traditional, gas-powered vehicles and that the company is looking for ways to lower costs, per a report by The Associated Press. The automaker has plans of launching 18 new EV models in 2024.
Back in 2024, Stellantis announced that it could be potentially laying off thousands of employees from plants in Detroit and Ohio as it has had to retool production to abide by recently imposed environmental regulations in California. The mandatory standards in California compel cars in the Golden State to have reduced emissions, forcing auto manufacturers into expediting a transition to EVs.
The Biden regime is also pushing for an expedited transition to EVs, where it’s setting stringent limits over the next decade on tailpipe emissions. Such regulations are designed to crush productive businesses and ultimately deprive countless humble citizens of affordable, effective vehicles.
At the end of the day, regulations crush consumers, which ultimately leads to a broader impoverishment of population.
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