MILAN — Stellantis plans to chop as many as 2,000 jobs in Italy this yr to additional scale back its workforce in Fiat’s former dwelling nation because the transition to electrical automobiles takes its toll.
The automaker, shaped from the merger of PSA Group and Fiat Chrysler, and native unions agreed on the reductions that signify about 4.3 % of its 47,000 workforce within the nation. The determination follows comparable cuts final yr.
The deliberate exits will come principally from employees indirectly concerned in manufacturing, who will obtain advantages that embrace early retirement and as a lot as two years of wage for older employees, unions mentioned Monday in a press release confirmed by Stellantis.
Carmakers have been grappling with inflation and supply-chain disruption as they retool their factories to transition to battery-powered vehicles, prompting a cost-cutting drive.
Ford Motor earlier this month mentioned it’ll reduce 3,800 positions in Europe as creating and producing electrical automobiles requires fewer employees.
Stellantis cited the EV shift for its plan to idle a Jeep-making manufacturing unit in Illinois. “The cost of electrification is going to have an impact on the footprint of business that we are going to have around the world,” CEO Carlos Tavares informed reporters earlier this month.
The maker of Jeep SUVs and Peugeot vehicles has been in talks with the Italian authorities about the way forward for the nation’s carmaking trade and bolstering demand for EVs.
Stellantis will increase manufacturing at its Melfi plant in southern Italy to concentrate on EVs and plug-in hybrid automobiles, and is shifting forward with plans for a battery manufacturing unit in Termoli that is because of begin manufacturing in 2026. The producer in late 2021 mentioned that it is looking for to show its Turin manufacturing unit into an EV hub.
Source: europe.autonews.com