Stellantis CEO Carlos Tavares speaks to the media after an investor day at the company’s North American headquarters in Auburn Hills, Michigan, June 13, 2024.
Michael Weiland/CNBC
Auburn Hills, MI – Strantis The company, created by the January 2021 merger of Fiat Chrysler and PSA Groupe, has achieved 8.4 billion euros ($9 billion), Chief Executive Carlos Tavares said on Thursday. Cost cutting.
The amount is more than double what was originally expected when the merger was announced in 2019 and is up from the latest €5 billion expected to be cut over five years after the merger, which would create the world’s largest carmaker.
Tavares did not elaborate on where the company achieved the extraordinary savings, but cutting costs has been a key priority for the veteran auto executive. Cost-saving measures include reshaping the company’s supply chain and operations as well as job cuts.
“We’re not looking for a path, we know where we’re going,” Tavares said at an investor event at the automaker’s North American headquarters. “Move forward bravely” in 2030 Strategic Plan.
Since agreeing to merge in December 2019, Stellantis has reduced its headcount by 15.5%, to about 47,500 employees by 2023, according to public filings. Additional layoffs in the United States and Italy this year involving thousands of factory workers have sparked outrage from unions in both countries.
Several Stellantis executives told CNBC that the layoffs were difficult but effective. Others, who spoke on condition of anonymity because of the potential impact, said the activities were exhausting and even excessive.
This is breaking news. Please check back for additional updates.
About The Author
