Stellantis CEO Carlos Tavares dropped a bombshell at last week’s investor meeting, announcing a massive cost-cutting plan that could turn the EV industry on its head.
This move, while aimed at making the company more competitive globally, raises some serious questions about the future of American car manufacturing and whether government EV mandates are really such a great idea.
The iconic Auburn Hills office tower, once a symbol of Chrysler’s success, is now in the crosshairs.
Tavares didn’t mince words when he said, “We have at least two plants that need a significant turnaround, at least two.”
He’s even sending in European managers to clean house, which should make everyone sit up and take notice.
Tavares is all in on what he calls an “EV first strategy,” but it comes with a hefty price tag.
He’s looking to slash costs by a whopping 30% to keep up with Chinese automakers.
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As he put it, “By the way, when we compare to leap motor, those 30% cost-competitive edge is what I’m always talking about.”
Auto analyst John McElroy doesn’t sugar-coat the situation: “He’s going after the company with an axe right now to get costs down.”
The fallout? We’re talking thousands of job losses.
It sounds like Stellantis is getting ready to take the angry hatchet to Auburn Hills. “30% cost savings target”. That’s potentially thousands of corporate jobs. I’ve been through this before at Chrysler (Daimler), it’s going to be rough. Working under those conditions sucks bad. https://t.co/7t5OixIjtB pic.twitter.com/Jk5bSJiRwc
— 🐾 InfoSec Coydog 🐾 (@NativeIndianDog) June 20, 2024
McElroy predicts that “The old Chrysler group as we know it in Auburn Hills is going to be a mere shadow of itself in just a couple of years.”
Here’s the kicker: the old Chrysler group is Stellantis’ cash cow, but it’s also where they’re bleeding money.
So, what’s the plan? Ship engineering jobs to cheaper countries like Turkey and Morocco.
As for that fancy Auburn Hills tower? McElroy thinks “The tower almost undoubtedly will be up for sale.”
This whole mess serves as a wake-up call about pushing EVs too hard, too fast.
Sure, governments worldwide are gung-ho about electric cars, but are consumers really on board?
The Stellantis shake-up shows that forcing this change might come at a steep price – and we’re not just talking dollars and cents, but people’s livelihoods.
The potential job losses in Auburn Hills are a stark reminder of the human cost of this rapid shift.
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It begs the question: Are we moving too fast with these EV mandates? Maybe it’s time to pump the brakes and let the market, not the government, decide the pace of this transition.
