The current year that is now coming to a close has been rather complicated for the Stellantis automotive group. Indeed, the company has posted major losses, a fact that has triggered a very extensive cost-cutting effort, consequently initiating a drastic reduction in corporate costs. This was followed by major problems with various unions, particularly with UAW of the United States. Nevertheless, Tavares seems to continue to be positive about this, although Trump regulations and the new Frame platform could add complexity to the tough time.
Tough year for Stellantis, does 2025 also begin that way?
The year, to say the least, has been a tough one for Stellantis, including the situation in the United States, which has seen crises, cutbacks, and new strategies. The multinational corporation, which as we know represents 14 brands, is facing a prolonged period that is characterized quite heatedly by several problems. In particular, in America, the most prominent brands such as Dodge, Jeep, Chrysler and Ram are not having a great time. After posting significant losses in the first half of the year, the company has embarked on drastic cost-cutting to cope with the difficulties, which has set off a chain reaction in many ways.
In particular, we have seen major changes on the management front at Stellantis, which has made numerous changes. In addition, there have been various production suspensions of various models, as well as the many clashes with unions, especially with UAW, which is led by President Shawn Fain. This all comes together with the newly re-elected Trump administration, which has already confirmed that it appears to be ready to revisit the $7,500 tax credit for electric vehicles, which had been introduced by the Biden era.
Tavares still positive about Stellantis’ future
While Stellantis CEO Carlos Tavares seems to continue to be very optimistic, the company’s workers live in constant uncertainty. During a visit to France, Tavares reiterated the company’s ability to adapt to global political changes and anticipated the arrival of a “multi-energy” pickup truck platform, the STLA Frame, which was officially unveiled at the Los Angeles Auto Show, as we discussed on previous occasions a few days ago.
As for the company’s internal situation, job cuts are little by little ending employee confidence. According to the Detroit Times, more than 3,750 workers have suffered layoffs at Stellantis’ U.S. locations. Among them, Kirk Hoddinott, a Jeep line worker in Toledo, interviewed by the news outlet, is preparing to lose his job next January. A father of three, Hoddinott recounted a year filled with relocation and instability, even going so far as to temporarily lose his health insurance. All quite complex situations and ones that no one would ever want to experience.
Even at the Warren Truck Plant, where production of the Ram 1500 Classic has ended, the mood is looking pretty grim. Eric Graham, president of the local UAW chapter, confirms that not only is morale completely down but there are also problems with promised benefits to workers, including unemployment benefits and health care. With a downsizing strategy and a changing political landscape, the future of Stellantis remains uncertain.