Automotive

Shakeup in US auto industry with management changes, layoffs

Written by Ethan Bernard


European automaker Stellantis is mulling a major management shakeup following the company’s recently lowered 2024 guidance, according to a Bloomberg report. This comes amid a spate of layoffs in the last few months at Stellantis, which has significant operations in the US, and at General Motors.

In its adjusted guidance at the end of last month, Stellantis cited a soft North American market and weakening industry dynamics worldwide.

Stellantis CEO Carlos Tavares said he could present his proposal at a board meeting scheduled in the US this week, according to the Bloomberg article.

A spokeswoman for Stellantis said the company declined to comment on the Bloomberg story.

Stellantis, GM layoffs

The news comes amid layoffs that have occurred at both Stellantis and GM in the last few months.

A report in the Detroit Free Press on Sept. 24 said Stellantis is planning indefinite layoffs of union-represented workers “across its footprint.”

When asked by SMU about these layoffs, the spokeswoman said the company will continue to take “the necessary actions to improve operations across our facilities.”

She noted that Stellantis is in “full implementation mode” to protect the company from “intense” external market conditions. At the same time, the focus is also still on “offering customers vehicles they can afford.”

This includes ongoing assessments to improve manufacturing efficiency.

“While that effort continues, the company will be implementing indefinite layoffs of represented employees across its footprint,” she added.

WARN notices

A survey of WARN notices issued in several Rust Belt and Midwestern states yielded the following layoffs at Stellantis and GM facilities.

At its Warren, Mich., Truck Assembly Plant, Stellantis said in a WARN notice on Aug. 9 that it was laying off 1,200 workers. The plant makes the Jeep Wagoneer and Wagoneer L, Grand Wagoneer and Grand Wagoneer L, and Ram 1500 Classic. A report from Fox 2 Detroit said nearly 2,500 jobs have been cut from the plant.

GM also said in late August it would lay off 634 workers in Warren. A report in the Detroit Free Press said the cuts were at GM’s Global Technical Center.

At GM’s’ Fairfax, Kan., Assembly and Stamping Plant, 1,695 layoffs were announced via WARN on Sept. 19. The plant has 2,275 employees and makes mid-size models such as the Cadillac XT4 and Chevrolet Malibu.

Ethan Bernard

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