AutoBeta(AutoBeta.net)11/09 Report--

European automaker Stellantis Group has increased its layoffs in an effort to cut costs, cutting 400 jobs at an auto parts factory in Detroit, according to media reports. "as the company enters the transition period, the company focuses on restructuring its operations in the United States to ensure a good start in 2025," the Stellantis Group said in a statement.

Before that, on November 6, Stellantis Group planned to cut about 1100 jobs at its Jeep plant in Toledo, Ohio, from January 5, 2025, in order to absorb excess inventory. Stellantis Group said in a statement that it will change the Toledo South factory that produces Jeep Gladiator pickup trucks from two shifts to single shifts. Affected UAW members will receive supplementary compensation, plus state unemployment benefits should be equivalent to about 74% of normal wages, and health insurance will last for two years.

Earlier, at the end of July, it was reported that Stellantis was considering cutting more than 1200 engineering jobs in Europe and the US and would offer a new round of voluntary buyout plans to US salaried employees to cut costs to cope with falling profits.

At present, traditional automobile manufacturers, including Stellantis Group, are facing the transformation of electrification. In the face of the high investment of electrification, many automobile companies are facing great pressure. For this reason, more and more automobile companies choose to reduce costs and increase efficiency through layoffs to cope with the cold winter of the industry. Layoffs have become part of the transformation initiative, which can address the impact on employment in the process of energy and technology transformation on the one hand, and cut costs for companies on the other. Industry insiders say that with the electrified transformation of the automobile industry becoming a development trend, there will be more layoffs in the future to reduce costs.

According to the latest financial report, in the first three quarters of this year, Stellantis Group achieved net revenue of 118 billion euros, down 18% from the same period last year; of which, net revenue in the third quarter was 33 billion euros, down 27% from the same period last year. In response, the Stellantis Group said that the decline in net revenue in the third quarter was mainly due to the decline in shipments, poor structure, and the impact of product pricing and foreign exchange. Shipments excluding joint ventures were 1.148 million, down 20 per cent from a year earlier, according to official figures. Doug Ostermann, chief financial officer of Stellantis Group, pointed out that although the group performed poorly in the third quarter, the launch of the new product will be positive. The Stellantis Group is scheduled to launch about 20 new models in 2024. In addition, in September this year, due to the slowdown in global car sales and increased competition with Chinese electric vehicle manufacturers, the Stellantis Group announced a cut in its financial forecast for 2024, and its operating profit margin is expected to fall to 5.5% to 7% in 2024; the free cash flow for the whole year of 2024 is expected to be between "negative 5 billion and minus 10 billion" euros. Stellantis Group also reiterated the financial performance forecast.

In the middle of last month, Stellantis Group announced that CEO Carlos Tavares would step down as CEO of Stellantis Group and retire when his term expires in early 2026. Stellantis Group is looking for a successor and announced a series of senior job changes. Stellantis Group said: "in order to promote process simplification and improve organizational performance in a volatile global environment, Stellantis Group announced targeted management organizational change, which takes effect immediately."

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat