Stellantis: layoffs coming to Auburn Hills? | Video news

Gloria Fiocchi Author
Stellantis: bad news for Auburn Hills? Reports of possible layoffs and uncertain future for ‘old Chrysler group’
Stellantis Auburn Hills

Stellantis aims to cut costs by 30 percent, putting thousands of jobs at risk, especially in Auburn Hills. “EV first” strategy and competition with Chinese manufacturers weigh on the group’s future.

Stellantis: possible imminent layoffs in Auburn Hills

Just a few days ago good positive news came in from the Stellantis plant in Auburn Hills. In fact, a giant Jeep Wagoner S Launch Edition had been reproduced on the facade of its base. This marketing move hinted at a very good situation for the plant, but it seems that more news is coming to the top of the company, this time not positive. In fact, there is now talk of possible job cuts, with a focus specifically on the Auburn Hills office tower. These possible layoffs were announced by Stellantis CEO Carlos Tavares during a meeting with investors last week.


Despite the great marketing move put in place, rumors of layoffs had been circulating among Local 4 workers for some time, and Tavares’ words at the time only fueled fears among workers. Indeed, the CEO confirmed that he has every intention of significantly reducing costs. In this sense, the Auburn Hills plant, having been built with minivan profits by Lee Iacocca, could be one of the main targets to be affected by the coming hard hit.

Although this is negative news, the company is not losing sight of the big goal, which is to become more globally competitive, especially against Chinese automakers. To make this possible requires an “EV first strategy” and a 30 percent cost reduction even if this includes laying off workers. According to automotive analyst John McElroy, this new decision by Stellantis could mean the loss of thousands of jobs, especially in the ‘old Chrysler group’. This is because although it is the most profitable group for the automaker, it also entails the biggest costs and problems for the company.

"EV first strategy" Tavares

As is now very well known the low costs with regard to engineering in countries such as Turkey and Morocco, which are giving increasing confirmation of this, could lead to the sale of the office tower, which would no longer be needed by Stellantis subsequent to the large reduction in staff. Losses for the industry could be very heavy, according to McElroy. In fact, he predicts that “the old Chrysler group – as known in Auburn Hills – will only be a shadow for the future of the automotive group. Stellantis currently making no official statements, but rumors at the moment speak of possible cuts by July, so very imminent.

But what might the future now hold for the Big 3 (Tesla, Ford, and General Motors) in the face of this move by Stellantis? According to McElroy, Stellantis is no longer seen as an American company, but as a foreign company. This very fact could have a significant impact on the landscape of the U.S. auto industry. At present, there are big questions and concerns for the workers in Auburn Hills, who anxiously await to know their fate.