Thread regarding Ford layoffs

Stellantis is about to kick off the blood-letting

https://www.clickondetroit.com/news/local/2024/06/20/stellantis-may-cut-many-jobs-in-metro-detroit-what-we-know/

AUBURN HILLS, Mich. – Stellantis leadership has promised a massive cost-cutting effort that may affect jobs for many Metro Detroit workers, particularly in Auburn Hills.

At last week’s investor meeting, Stellantis CEO Carlos Tavares promised cost-cutting measures for the company. It could mean considerable job loss for workers, including those at the Auburn Hills office tower.

Tavares made sure to alert everyone that his cost-cutting program was aimed directly at the building. Former automotive and Chrysler executive Lee Iacocca said he built with the Auburn Hills building with profits he made from the minivan.

“We have at least two plants that need a significant turnaround, at least two,” Tavares said.

Tavares also said he’s sending European plant managers to clean up the mess, which should get everyone’s attention. But then he talks about what he calls an “EV first strategy” and cost-cutting to compete globally with Chinese automakers.

“By the way, when we compare to Leapmotor, that 30% cost-competitive edge is what I’m always talking about,” Tavares said.

He’s looking to cut 30% of Stellantis costs. Local 4 has been hearing rumblings about layoffs in Auburn Hills for a while now.

“So, he’s going after the company with an axe right now to get costs down,” said auto analyst John McElroy. “The old Chrysler Group as we know it in Auburn Hills is going to be a mere shadow of itself in just a couple of years.”

The move will send a massive shock wave through the industry. McElroy says the job loss is likely to be significant.

“They’re going to take a lot. We’re talking to thousands of people,” McElroy said.

The old Chrysler Group makes the most money for Stellantis, but also has the biggest costs and problems.

This means outsourcing engineering to the lowest-cost countries like Turkey and Morocco -- which also means the old headquarters building is likely headed the way of the Renaissance Center.

“The tower almost undoubtedly will be up for sale,” McElroy said. “Stellantis doesn’t need all that office space anymore.”

Local 4 called Stellantis Media Relations on Wednesday, June 19, but they were closed due to Juneteenth. But we’re hearing that cuts could take effect by July.

When asked what the layoffs mean for the Big Three, McElroy says Stellantis is no longer an American company, instead calling it a foreign company.

It's about to get ugly around here.

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Post ID: @OP+1t8HoebC

14 replies (most recent on top)

I feel like you two are making slightly different points.

Yes, many American companies sell low cost foreign-made goods. And people will by from the less-expensove source.

Yes, many Americans will gladly choose foreign-made goods - and watch American made businesses fail - if it means they can save a buck.

You're both right.

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Post ID: @ehrd+1t8HoebC

@evne+1t8HoebC

You're either being narrow minded or willfully ignorant.

Many MANY American made products and services have gone out of business because foreign wages and costs are so much lower that American pricing is higher.

That's all that most Americans care about. Bye bye American made products. Hellow cheap foreign goods.

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Post ID: @easg+1t8HoebC
Americans couldn't wait to buy from Amazon. And it eventually ki-led off most of our brick and morter stores.

Those brick and mortar stores were selling the same Chinese stuff. So why pay more for it?

I used to go out of my way to bu my American made tools at Menards. But since they switched over to Chinese made stuff, I buy from Harbor Freight. It’s the same stuff. Why pay more.

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Post ID: @evne+1t8HoebC

@dpvx+1t8HoebC

I don't know why you're getting any down votes.

In my 70 years, I've watched our American business owners sell out to foreign ownership. US Steel is planning to sell to Japan's Nippon Steel. Americans don't seem to care. Old Joe Biden opposed this sale - and his opposition was angry that he got in the way.

Yay for capitalism.

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Post ID: @ekyw+1t8HoebC

@1itm+1t8HoebC all that means is that your manager is on the chopping block too.

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Post ID: @eowm+1t8HoebC

Business owners do not owe Americans jobs. Americans do not have a right to a job.

Stellantis values the Jeep brand and may even the Dodge brand. They'll keep the assembly here because it makes sense - for now. But all the office work will definitely be sent to low cost countries. Or, as Stellantis calls them, Best Cost Countries. All companies are going to do this.

Generally speaking, Americans don't actually care about buying 'American Made' products. Look at Amazon. Mostly foreign products sold at a fraction of the price American products cost. Americans couldn't wait to buy from Amazon. And it eventually ki-led off most of our brick and morter stores. Americans are happy to watch American businesses crumble if it means they can save a little money.

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Post ID: @dpvx+1t8HoebC

CT is just doing his part to dismantle USA. One company at a time.

Sadly, it seems it may take WW3 for this nation, for this government, to wake up and finally do something about it.

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Post ID: @dden+1t8HoebC

Manager told me today that there are no planned layoffs for the rest of the year. We are short staffed and it has impacted everything. He said JF has realized this conundrum and is asking his LL1s to find other ways to cut cost. Wall Street is NOT happy with what is going on. Let’s hope the manager is right!

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Post ID: @1itm+1t8HoebC

Stellantis AI and machine learning executive latest to depart automaker https://www.detroitnews.com/story/business/autos/chrysler/2024/06/21/stellantis-ai-and-machine-learning-executive-latest-to-depart-automaker/74168832007/

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Post ID: @1jmw+1t8HoebC

Cuts may be on the horizon, but it is imperative that the cuts come from the right places. In the past, cuts came from wherever there were people with pensions and it had a disastrous effect on engineering and IT. The emphasis on non value-add positions should be the focus. Think about all the people you run into who do not contribute to anything but corporate mandates. In my area, there are numerous people who should be shaking in their boots because they are the birthday party planners, the DEI metrics assemblers, the RALLY coordinators, the "project managers", and the thinkers of big thoughts. We could get rid of 20% in my area of the right people and we wouldnt miss a beat. In fact, we might even become more productive since the human speed bumps will have been removed.

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Post ID: @afl+1t8HoebC
Me thinks the entire car biz is about to shrink.

Lower income people are having a hard time making ends meet.
Credit card defaults are up and new credit card spending is down.

I'm old enough to remember the days of "stagflation" in the 70s, though I was too young to participate. I remember my parents, their friends and our neighbors having trouble.
I think we are headed for a repeat of that. Maybe worse. And it won't just be the car industry tanking.

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Post ID: @kup+1t8HoebC

Train station will be like the RecCen soon. Up for sale for pennies on the dollar.

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Post ID: @nzn+1t8HoebC

Maybe. Me thinks the entire car biz is about to shrink. Costs, energy, regulations all at face value are growing more and more absurd - unless. The real object of the exercise is a shove towards an era dominated by public transportation and a lot less individual mobility. Just thinking big here, trying to connect all the crazy dots. The whole EV thing was never possible at current full rate production... so my murky crystal marble (I can't afford a ball) says hang on, we're about to hit the really bad part. If that's where we're going, the first ones out of the game are the luckiest. But what does an id--t with a marble know anyway?

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Post ID: @moe+1t8HoebC

You could replace Stellantis and Auburn Hills with Ford and Dearborn in that article. Anyone that doesn't think the Big 3 are all about to layoff a lot of US based white collar workers is nuts. You can't give the UAW billions and not cut elsewhere. The billions weren't there to give! Oh on paper it was, but not in real dollars.

They can say Stellantis isn't an American company but it's as American as Ford and GM now. And they all bow to the UAW alter. Meaning US salaried workers are going to be the ones to pay in blood.

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Post ID: @ywp+1t8HoebC

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