Stellantis CEO Carlos Tavares speaks to the media on June 13, 2024 following the company’s investor day at its North American headquarters in Auburn Hills, Mich.
Michael Wayland/CNBC
HILLS AUBURN, Mich. – Stellantis Chief Executive Carlos Tavares said on Thursday that it had achieved an 8.4 billion euro ($9 billion) cost reduction from the merger of Fiat Chrysler and PSA Groupe, which formed the company in January. 2021.
That amount is more than double initial expectations since the merger was announced in 2019 and increased from the updated report. 5 billion euros of the expected decline within five years after completion of the merger that created one of the world’s largest automakers.
Tavares didn’t go into detail about how the company overachieved with savings, but cutting costs is a key task for the veteran auto executive. Cost-saving measures include reshaping the company’s supply chain and operations, as well reduce the number of employees.
“We’re not looking for our way, we know where we’re going,” Tavares said during the automaker’s investor event at its North American headquarters, referring to the automaker’s car export. 2030 “Dare to Advance” strategy plan.
According to public filings, since the merger agreement in December 2019, Stellantis has reduced its headcount by 15.5%, or about 47,500 employees, through 2023. Additional job cuts in this year involving thousands of factory workers in the US and Italy has angered unions in both countries.
Several Stellantis executives described the cuts to CNBC as difficult but effective. Others, speaking on condition of anonymity due to possible consequences, described them as overwhelming fatigue.
This is breaking news. Please check back for more updates.
