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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.

Dodge, Jeep, Ram showcasing electric wares over the next four months

Mopar Insiders took notes on Stellantis' half-year earnings call. Seems three of the eight Stellantis brands operating in the U.S. will be making big announcements about coming electric offerings in the next few months. Dodge is up first. We've been writing about the house of the muscle car trying to put on an extra special show during its Speed Week in Detroit in August, the span between Roadkill Nights and the Woodward Dream Cruise. Seems that's confirmed with the presentation of a "Gateway" muscle car and a "Future" muscle car. The former is expected happen on August 16 and be the Hornet PHEV, Dodge's version of the Alfa Romeo Tonale PHEV. The plug-in hybrid Tonale Q4 uses the powertrain from the Euro-market Jeep Compass 4xe, but gets a larger battery pack and produces a total 275 hp. We're looking forward to finding out if brand overlords decided the Dodge should have more, less, or the same output as the Alfa, and the same battery pack or the smaller Compass pack. The latter "Future" vehicle is expected to bow the day after. This would be a concept version of the Challenge e-muscle car that we've been salivating over for too long. Given two of Stellantis' most powerful motors slotted into the STLA Large platform, output north of 800 horses seems to be the consensus. The production version isn't slated for sale until the end of 2023, so the model on showroom floors will likely differ slightly from what we see next week. It's Jeep's turn in September, the off-road brand shining light on the plug-in hybrid options headed to showroom floors here. That should mean news on the Renegade 4xe and Compass 4xe anticipated in the U.S. in 2024, and a Gladiator 4xe the year after. Wagoneer and Cherokee electrification plans could be on the docket, too, as well as plans for wider global distribution of the Jeepster we've seen in Europe.  Finally, two months later, Ram takes the stage for updates on its electric Revolution. So far, that entails the Ram Promaster BEV, a van likely to combine years of experience from the Fiat Ducato Electric and the Peugeot E-Boxer that have been serving fleets in Europe. MI thinks November topics will include a 79-kWh battery, four drive modes, and the chance of the ProMaster getting a side door for delivery fleets like Amazon. Of course, the electric Ram pickup is the meat enthusiasts will have their forks out for.

Federal grand jury issues subpoenas to U.S. FCA dealers

Despite an attempt to clarify and backtrack, it seems the investigation into Fiat Chrysler Automobile's false sales reporting is picking up steam. According to Automotive News, FCA dealers and regional offices have received subpoenas ordering them to supply documents and testimony to a grand jury in Detroit. Of course, the dealers are objecting to the request. They claim the subpoenas are too broad and would require them to hand over too much personal information, like personal phone numbers of dealer employees going back years. The group wants to make it clear that FCA has clarified its sales reporting and that the issue is with the manufacturer, not dealers. The dealers say that FCA employee records and testimony should be enough. It's rumored that a dealer group is the one that sparked the investigation in the first place. FCA confirmed on July 18 that it indeed was under investigation by a number of federal agencies. Although they've clarified their position regarding sales reporting, the fraud investigation continues full steam. Related Video: