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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.

Alfa Romeo to go all-electric by 2027

On an earnings report last week, Alfa Romeo parent company Stellantis tacked on some electrification plans for its 14 brands. One surprising piece of information: Alfa Romeo would be the first of them to go fully electric, and it'll happen by 2027. We've known that Alfa Romeo would eventually go electric, but it's a bit surprising to hear that Stellantis wants it to happen on such a short timeline, and that it would spearhead its EV push. Alfa Romeo has been one of the most protected brands in the Stellantis empire, and one of the most traditional as well. The often quirky but nevertheless beloved brand has long been a favorite among car enthusiasts. In fact, brand heritage is so important that back in 2014 the company opted to develop its own Spider rather than borrow a platform from the ND Miata (That car went to become the Fiat 124 instead). Stellantis didn't confirm what the first Alfa EV would be, but it could arrive in the form of a subcompact crossover about the size of a BMW X1. It could also share the platform with other Stellantis brands like Peugeot, Fiat and Jeep and is slated to debut in 2022 or 2023. In the meantime, Alfa Romeo is working on the Tonale plug-in hybrid electric, which was recently delayed. Reportedly, Stellantis head Jean-Philippe Imparato was not satisfied with the hybrid-electric system. The PHEV crossover will share a platform with an upcoming Jeep model as well. It should arrive in early 2022 if things stay on track from here. The express timeline also indicates that the new Stellantis STLA large-vehicle architecture will have to be ready before 2027. It's set to replace the sharp-handling rear-wheel-drive Giorgio platform that underpins the Giulia and Stelvio. And while it'll be shared across multiple Stellantis brands, Imparato has promised Alfa Romeo-badged cars will retain the qualities that have made the name so special. In the same report, Stellantis confirmed that Opel would go all-electric by 2028 and Fiat would follow by 2030. Related Video: 2021 Jeep Wrangler 4xe plug-in hybrid powertrain feature walkthrough | Autoblog

Ram, Jeep redesigns on hold, Alfa Romeo models may come sooner

Last summer, FCA outlined an ambitious five-year plan that sketched out the company's product intentions for each of its brands through the end of 2018. However, even the best strategies sometimes need tweaking. According to Reuters after speaking with unnamed people at auto suppliers, FCA is now possibly delaying at least a dozen projects in North America for a variety of reasons. From vehicle to vehicle, these postponements allegedly last anywhere from just a few months to over a year. The sources from the suppliers claim that in some cases these tweaks are for engineering and design changes. The next-gen Ram 1500 reportedly has among the shorter delays and is being pushed from mid-2017 to November 2017, according to Reuters. Also, the much-discussed future Jeep Wrangler is allegedly moving a little later to July 2017. Among the vehicles purportedly seeing longer delays, the next-gen Grand Cherokee could get pushed back about a year to 2018. That then forces the launch of the three-row, luxury Grand Wagoneer to be even further away. Jeep's upcoming C-segment CUV and the all-new Chrysler 300, Dodge Charger, and Challenger might also see postponements. The one brand allegedly seeing an accelerated plan is Alfa Romeo. Without going into detail, the sources from these suppliers claim that the Italian automaker is getting even more vehicles for its lineup and could get them even faster than planned. "Those plans need to be flexible and fluid, with the potential to add some vehicles, pull some forward and extend the life cycle of others," FCA said to Reuters about all of these allegations. "We look at these programs on a vehicle-by-vehicle basis." Investment in the auto industry has been a major topic for FCA CEO Sergio Marchionne as of late. He believes consolidation is necessary so that companies aren't burning money on the same projects. Related Video: News Source: ReutersImage Credit: Bill Pugliano / Getty Images Plants/Manufacturing Alfa Romeo Chrysler Dodge Fiat Jeep RAM Sergio Marchionne FCA fca us