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Stellantis lays off salaried workers, cites uncertainty in EV transition

DETROIT — Jeep maker Stellantis is laying off about 400 white-collar workers in the U.S. as it deals with the transition from combustion engines to electric vehicles. The company formed in the 2021 merger between PSA Peugeot and Fiat Chrysler said the workers are mainly in engineering, technology and software at the headquarters and technical center in Auburn Hills, Michigan, north of Detroit. Affected workers were notified starting Friday morning. “As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure,” the company said in a prepared statement Friday. The cuts, effective March 31, amount to about 2% of Stellantis' U.S. workforce in engineering, technology and software, the statement said. Workers will get a separation package and transition help, the company said. “While we understand this is difficult news, these actions will better align resources while preserving the critical skills needed to protect our competitive advantage as we remain laser focused on implementing our EV product offensive,” the statement said. CEO Carlos Tavares repeatedly has said that electric vehicles cost 40% more to make than those that run on gasoline, and that the company will have to cut costs to make EVs affordable for the middle class. He has said the company is continually looking for ways to be more efficient. U.S. electric vehicle sales grew 47% last year to a record 1.19 million as EV market share rose from 5.8% in 2022 to 7.6%. But sales growth slowed toward the end of the year. In December, they rose 34%. Stellantis plans to launch 18 new electric vehicles this year, eight of those in North America, increasing its global EV offerings by 60%. But Tavares told reporters during earnings calls last month that “the job is not done” until prices on electric vehicles come down to the level of combustion engines — something that Chinese manufacturers are already able to achieve through lower labor costs. “The Chinese offensive is possibly the biggest risk that companies like Tesla and ourselves are facing right now,Â’Â’ Tavares told reporters. “We have to work very, very hard to make sure that we bring out consumers better offerings than the Chinese.

Marchionne defends FCA recalls, says Wrangler won't be all-aluminum

FCA CEO Sergio Marchionne recently received the 2015 Industry Leadership Award from the SAE Foundation. While speaking with the press after the event, the boss discussed his thoughts about some key issues regarding the company's future. One of the big regulatory issues facing FCA at the moment is the upcoming public hearing by the National Highway Traffic Safety into the automaker's handling of 20 recalls. Marchionne has no intention of testifying there, according to The Detroit News. The CEO also thinks that the government regulator is becoming much more aggressive in how it handles safety campaigns, but the Feds aren't necessarily doing a very good job of communicating that. "We need to work with the agency in a very cooperative and open way to make sure that we can meet their requirements for their new stance," he said, according to the newspaper. "We have no option but to comply with their requirements and we will. I have nothing to hide in this process. I just want clear rules." Marchionne also dropped the news that the company has changed its mind about making the next Jeep Wrangler totally from aluminum. "Because of the difference in cost, not just the new material but the actual assembly process, I think we can do almost as well without doing it all-aluminum," he said to The Detroit News. This seemingly opens the door for the model to remain in production in Toledo, OH, but only just a crack. Marchionne says that the new Wrangler would still use a large amount of aluminum, and there are "at least" two sites in contention for the assembly. The company doesn't have too long to make a decision because the model reportedly launches in 2017.

Dodge Grand Caravan reportedly will cease production in 2020

The Dodge Grand Caravan looks like it may finally be reaching its demise next year. A report from Automotive News Canada says the old Dodge minivan will cease production in May 2020. The report cites AutoForecast Solutions as the source of its news. FCA confirmed to us that the van will be going away eventually, but the company is not ready to put an official end date on it yet. For the time being, it looks like the Grand Caravan’s long run will eventually grind to a halt in Windsor, Ontario, the vanÂ’s only production site. With the introduction of the Chrysler Voyager as the budget minivan option from Chrysler, FCA may think it no longer has any use for the outdated Dodge. The Grand Caravan has a starting price of $28,535, whereas the new Voyager is priced from $28,480. ThatÂ’s an almost identical starting point, but we still donÂ’t know what kind of incentives FCA will offer for the Voyager. There are typically big cuts for the Grand Caravan, which have pushed recent average transaction prices down to $24,972. We imagine itÂ’ll be much more difficult for FCA to offer discounts of that magnitude to Voyager shoppers. Still, AutoForecast Solutions told Automotive News it believes FCA will transition folks away from the Grand Caravan. “For the 2020 model year, theyÂ’ll likely run to fleet and then get the consumers to buy the new Voyager,” says Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. Eliminating the Grand Caravan would be a strong bet on ChryslerÂ’s strategy of splitting the Pacifica into two different model lines. Nearly every month, FCA sells more Grand Caravans than Pacificas. The Pacifica is the far superior minivan to own, but you canÂ’t argue with a cheap price. Once the Grand Caravan is gone, budget minivan buyers will have no choice but to buy a Voyager if they want the cheapest new option out there. Entries from the few other manufacturers that produce minivans are all going to be more expensive than the Voyager. The 2020 Pacifica and Voyager team are slated to reach dealers later this year, but it wonÂ’t be until next year that weÂ’re able to fully take stock of how this plays out for FCA.