Stellantis CEO Carlos Tavares promises massive job cuts as Stellantis attempts to restructure its operations. Several plants and even the company’s HQ building in Auburn Hills are all potential targets for job cuts.
Carlos Tavares plans massive job cuts that could see the Auburn Hills HQ building be axed as part of a massive cost-cutting effort.
Stellantis CEO Carlos Tavares recently admitted that the company made “arrogant mistakes” in the U.S. market that led to bloated dealer inventories, declining sales, and raised concerns from investors. Tavares put himself in the pool of blame and promised that the company would promptly fix these issues to restore profitability.
These actions are turning out to be far more aggressive than some might have expected with the CEO revealing in an investor meeting that the company is undertaking a massive cost-cutting effort which might include massive job cuts and the sacrifice of the Auburn Hills HQ building in an attempt to rein in excess spending and costs.
Massive job cuts are on the horizon
The Auburn Hills facility not only houses office buildings but also advanced engineering facilities.
According to WDIV Detroit the network has heard persistent rumors of massive layoffs in the company for a while now with Tavares going out of his way to say that the bulk of the cost cuts would be targeting the Auburn Hills facility which was completed in the 1990s and was one of the late Lee Iaccoca’s final pet projects though the building itself would be fully completed after he retired from the company in 1992.
A hallmark feature of the Auburn Hills HQ building is its 249-foot tall office tower which features a Chrysler Pentastar logo at the top and was supposed to invoke the design of classic automobiles with its wraparound design. The tower is better known for being a giant billboard in recent years for key Stellantis products but behind the advertising glitz, are offices where hundreds of workers go about their day. These workers as well as the associated engineering staff will most likely bear the brunt of the cuts with Stellantis potentially moving its engineering and office positions overseas to cut costs.
If Stellantis does embark on these cuts, the old HQ building might be put up for sale and it would also follow a recent move by General Motors which revealed that it will begin moving its headquarters out of the Renaissance Center and into the new and noticeable smaller Hudson Building in downtown Detroit.
Manufacturing plants are also in the crosshairs
Manufacturing plants are also being targeted with two of them needing intervention from European plant managers.
In addition to potentially gutting the Auburn Hills HQ building, Tavares also said that two manufacturing plants are in need of a significant turn around though he stopped short of revealing which plants are the ones that need immediate intervention. This intervention will come in the form of European plant managers who will come in and clean up the mess. Part of this clean-up will include job cuts but it remains to be seen how many plant workers will be laid off though sources familiar with the plan say that the potential layoffs will gain the attention of many throughout the company.
This streamlining effort at the plant level would also cut costs with Tavares saying that he’s looking to cut 30% of the company’s overall expenses. The old Chrysler group and its umbrella of brands are responsible for a large chunk of its profits, but this same group of brands is also responsible for the bulk of the company’s costs which is something Tavares intends to correct moving forward.
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What does this mean for the city of Auburn Hills?
The massive wave of job cuts might help Tavares fix the company but it will also have broader impacts on Auburn Hills and neighboring cities.
Tavare’s cost-cutting plan is aiming to reshape Stellantis but in the process, it might also have a serious impact on the city of Auburn Hills where the HQ building is located. This Metro Detroit suburb has had a long history with Chrysler and it dates back to the first automobiles when automotive pioneer John Dodge bought a farm estate in the area to use as his country retreat.
The city has since become intertwined with the various iterations of Chrysler over the years, and the company and the city have occasionally worked together on numerous projects. Losing the Auburn Hills HQ building will have a strong effect on Auburn Hill’s economy including its dining sector with many of the restaurants in the area not only depending on customers from I-75 and Oakland University for their survival but also Stellantis workers from the HQ building and its associated web of offices.
Auto analyst John McElroy painted a grim picture in regards to the job cuts and revealed that they will be significant “They’re going to take a lot; we’re talking to thousands of people.” McElroy elaborated further stating “The tower almost undoubtedly will be up for sale”. “Stellantis doesn’t need all that office space anymore.”
This will be a nightmare scenario for the city and the closure of the Auburn Hills HQ building will have economic consequences that will be felt not just in the city but also in the immediate region with neighboring Rochester Hills and Pontiac also potentially seeing adverse economic effects due to the massive job cuts.
Meanwhile, Ford is spending money like it’s water (train station, Dearborn campus, battery/EV plants).
Shareholders, listen up!!
The only thing “wrong” with the Chrysler side of Stellantis is the CEO, Tavares, is extremely greedy. The reason inventory is up and vehicle sales are down is because Stellantis greedily jacked the prices of all it’s vehicles so they aren’t affordable anymore. Tavares has already slashed costs to the bone. You don’t lose weight by amputating body parts that keep you alive. Chrysler is a very profitable company, but Tavares is going to kill it off. EV is NOT the way to go. He’s ruining the company by taking our engineering to 3rd world countries to try to save money. We’ve already seen that 3rd world engineering only gets you 3rd world Quality. Save Chrysler, get rid of Carlos Tavares.
If Carlos was truly looking to save Stellantis money why did he accept a 50% raise ???
I have been talking with friends and associates. We would like to petition the shareholders to remove Tavares. I am I small shareholder myself. We believe Tavares is taking advantage of the weak leadership currently in America. His motivation is to remove American automobiles and replace them with rebadged inferior products from China and France.
Let me know where to sign!
Totally agree w all comments so far….he is certainly no Sergio
It’s Time to move the company out of the USA,to hard to manufacture hear with are Government and union’s, Turkey, Asia mabe