Stellantis USA plans $200 million in personnel cuts by 2024 And Stellantis recalls 1.2 million vehicles over rearview camera issue

Stellantis USA plans $200 million in personnel cuts by 2024 And Stellantis recalls 1.2 million vehicles over rearview camera issue

Stellantis USA is planning personnel cuts of $200 million by the end of 2024, reports Automotive News. This was stated by Chief Financial Officer Natalie Knight. The primary reason is electric cars, which require significant investments and, consequently, cost reductions in other areas.

Stellantis CEO Carlos Tavares also cited the issue of electric vehicles manufactured in China making their way around the world as one of the reasons why Stellantis must become more efficient. The company must be “totally competitive in terms of costs at the highest level. Without cost competitiveness, we will not be able to face Chinese competition.”

Stellantis anticipates new layoffs in North America by the end of 2024

Stellantis

The number of employees in North America of the automotive giant will decrease during this year. Additionally, part of the engineering work is being outsourced and, in parallel, the range is being consolidated on a small number of versatile platforms capable of supporting different body styles and powertrains.

Many high-profile North American executives have left the company this year, increasing the uncertainty created by multiple job cuts. Stellantis has begun recruiting most of its engineering workforce in low-cost countries such as Morocco, India, and Brazil and is trying to source 80% of its components in regions where it can get the best prices.

During the recent Investor Day, Knight stated that the automotive company has managed to ensure that 90% of outsourced engineering services come from countries with more advantageous costs. Carlos Tavares’ search for greater efficiency has already led to buyout offers and layoffs of salaried employees in recent months. The manager also stated that at least two U.S. plants “need a significant turnaround,” which could mean further job cuts.

When PSA Group and Fiat Chrysler Automobiles decided to merge in December 2019, the companies stated that their union would produce about $4 billion in synergies through optimized investments in platforms, engine families, and new technologies, while leveraging greater scale on the purchasing side. Since then, that number has risen to $9 billion thanks to the company’s ongoing mission to simplify operations.

Stellantis Tavares

Furthermore, Stellantis is streamlining its logistics operations by bringing more distribution in-house. The Group will use more than 1,000 trucks in Europe to control the transport of vehicles between its plants and the end customer, as stated by Maxime Picat, head of purchasing and supply chain. Picat stated that outbound logistics costs in Europe will decrease by 25% in the second half of 2024 compared to the previous year.

Stellantis is launching the STLA Small, STLA Medium, STLA Large, and STLA Frame platforms in addition to the Smart Car and a light commercial vehicle platform. The STLA Large platform will underpin a diverse mix of Jeep, Dodge, Alfa Romeo, Chrysler, and Maserati vehicles, totaling eight models through 2026. It will debut in the United States this year on the Jeep Wagoneer S and Dodge Charger Daytona.

Stellantis is recalling nearly 1.2 million vehicles in the United States and Canada because of a software glitch that can disable rearview cameras.

The recall covers certain vehicles from model years 2022 and 2023 Jeep Compass, Grand Cherokee, Wagoneer and Grand Wagoneers, as well as 2021 through 2023 Jeep Grand Cherokee L SUVs. It also covers 2022 and 2023 Ram ProMaster vans and 2022 Ram 3500 chassis cabs, 1500 pickups and 2500 pickups. Chrysler Pacifica minivans from 2021 through 2023 and Dodge Durango SUVs from 2021 and 2022 are also included in the recall.

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A company investigation determined that radio software in some vehicles could inadvertently disable their rearview cameras, Stellantis spokesperson Frank Matyok said. The company is not aware of any injuries or accidents related to the glitch, but urged customers to follow recall instructions. The recall spans 1.033 million vehicles in the United States and 126,000 in Canada.

The company plans to fix the issue with a software update. More than 735,000 affected vehicles have received the update so far, Matyok said. Owners of an additional 298,000 vehicles are advised to accept a request for the update on their media screens. The company will also send recall notices by mail beginning Aug. 2, according to documents published by the National Highway Traffic Safety Administration.

Drivers can confirm if their specific vehicle is included in this recall using the NHTSA site.

Stellantis’s radio software glitch comes after the company had to recall more than 200,000 SUVs and pickup trucks last week due to a separate software malfunction that could cause a vehicle’s stability control to fail, which increases the risk of a crash.

Other automakers have issued recalls related to rearview and backup cameras over the past several months. In May, Honda recalled nearly 200,000 pickup trucks over concerns that rearview cameras could stop working in cold weather. Tesla also recalled about 200,000 vehicles in January after some backup cameras malfunctioned while in reverse. Ford Motor and Range Rover have also recalled vehicles with faulty backup cameras in the last year.