Stellantis may cut many jobs in Metro Detroit: What we know – WDIV ClickOnDetroit

Rod Meloni, Reporter, CFP ®
Published: June 20, 2024, 10:37 AM
Rod Meloni, Reporter, CFP ®
AUBURN HILLS, Mich. – Stellantis leadership has promised a massive cost-cutting effort that may affect jobs for many Metro Detroit workers, particularly in Auburn Hills.
At last week’s investor meeting, Stellantis CEO Carlos Tavares promised cost-cutting measures for the company. It could mean considerable job loss for workers, including those at the Auburn Hills office tower.
Tavares made sure to alert everyone that his cost-cutting program was aimed directly at the building. Former automotive and Chrysler executive Lee Iacocca said he built with the Auburn Hills building with profits he made from the minivan.
“We have at least two plants that need a significant turnaround, at least two,” Tavares said.
Tavares also said he’s sending European plant managers to clean up the mess, which should get everyone’s attention. But then he talks about what he calls an “EV first strategy” and cost-cutting to compete globally with Chinese automakers.
“By the way, when we compare to Leapmotor, that 30% cost-competitive edge is what I’m always talking about,” Tavares said.
He’s looking to cut 30% of Stellantis costs. Local 4 has been hearing rumblings about layoffs in Auburn Hills for a while now.
“So, he’s going after the company with an axe right now to get costs down,” said auto analyst John McElroy. “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.”
The move will send a massive shock wave through the industry. McElroy says the job loss is likely to be significant.
“They’re going to take a lot. We’re talking to thousands of people,” McElroy said.
The old Chrysler Group makes the most money for Stellantis, but also has the biggest costs and problems.
This means outsourcing engineering to the lowest-cost countries like Turkey and Morocco — which also means the old headquarters building is likely headed the way of the Renaissance Center.
“The tower almost undoubtedly will be up for sale,” McElroy said. “Stellantis doesn’t need all that office space anymore.”
Local 4 called Stellantis Media Relations on Wednesday, June 19, but they were closed due to Juneteenth. But we’re hearing that cuts could take effect by July.
When asked what the layoffs mean for the Big Three, McElroy says Stellantis is no longer an American company, instead calling it a foreign company.
Watch Rod Meloni’s full report on this below.
Copyright 2024 by WDIV ClickOnDetroit – All rights reserved.
Rod Meloni is an Emmy Award-winning Business Editor on Local 4 News and a Certified Financial Planner™ Professional.
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