Stellantis is also facing job cuts in the United States. The company has announced the elimination of 59 positions at the StarPlus Energy facility in Kokomo, Indiana. This plant was established through the StarPlus Energy joint venture that Stellantis signed with South Korean company Samsung SDI for the production of lithium-ion battery cells and modules destined for the Group’s electric models.
Stellantis cuts jobs to revise electric vehicle plans
The job cuts represent 18% of the total workforce employed at the U.S. site, specifically among salaried employees hired by the Group. Local media outlets reported the news, placing Stellantis‘ decision within a complex moment marked by global and local uncertainty regarding electric vehicle management. Investments and demand are slowing within a geopolitical context influenced by policy changes imposed by current U.S. President Donald Trump’s administration. Last year, the Kokomo-based facility received public aid worth approximately $7.5 billion.
Currently, the StarPlus Energy joint venture facility employs 318 salaried workers alongside 414 hourly production workers; the latter are not affected by the announced cut of 59 workers. In a statement released by Stellantis on the matter, the Group admitted that the decision centers on the continued evolution of the U.S. electric vehicle market. This aligns with a reevaluation of the Group’s product strategy for North America, aimed at meeting different customer demands and needs “with flexible powertrain options,” the statement continues.
Current U.S. policies have resulted in significant slowdowns in the electric vehicle sector, partly due to the elimination of various incentive policies promoted by the previous U.S. administration. The federal tax credit for purchasing electric-powered models has also been eliminated. Meanwhile, the current U.S. administration has implemented measures to favor the spread of internal combustion engine vehicles, reflecting a more strategic approach toward the U.S. automotive industry.
At the same time, the cuts proposed by Stellantis follow the U.S. Department of Energy’s December 2024 decision on conditional financing of $7.54 billion in the form of a loan provided to StarPlus Energy. The resources allocated by the local government were intended to finance the construction of two plants for battery cell and module production at the Kokomo facility, strengthening the entire local supply chain for managing the Group’s new electric vehicles. Regarding the cut of 59 Group employees, Stellantis confirmed that they will receive a severance package covering benefits accumulated over the years.
