FILE - The Stellantis sign appears outside the Chrysler Technology Center, Jan. 19, 2021, in Auburn Hills, Mich. Jeep maker Stellantis is planning to lay off an unspecified number of workers at its U.S. factories in the coming months to deal with a rapidly changing global auto market, the company said Tuesday, April 23, 2024. DETROIT — Jeep maker Stellantis is planning to lay off an unspecified number of workers at its U.S.
The statement comes as the company faces increased capital spending to make the transition from gasoline vehicles to electric autos. It also has reported“These actions will help improve productivity and ensure the company’s long-term sustainability in a rapidly changing global market,” the Stellantis statement said.
The company wouldn’t give details of when the indefinite layoffs would start or state specific reasons for them, but the trade publication Automotive News reported Monday that Stellantis had laid off 199 full-time workers at its Ram pickup truck factory in Sterling Heights, Michigan, north of Detroit.
Stellantis CEO Carlos Tavares has said his company has to work on cutting costs globally in order to keep electric vehicles affordable for the middle class. Electric vehicles, he has said, cost about 40% more than those powered by gasoline. Without cost reductions, EVs will be too expensive for the middle class, shrinking the market and driving costs up more, Tavares has said.