From CNBC: 2024-06-13 13:19:10

Stellantis CEO Carlos Tavares announced that the company achieved 8.4 billion euros in cost reductions from the merger of Fiat Chrysler and PSA Groupe, exceeding initial expectations. The largest reduction came from sharing and consolidating engineering assets. Other cost-saving measures included reshaping the supply chain and a 15.5% headcount reduction since 2019.

Tavares emphasized the company’s commitment to cost-cutting during Stellantis’ investor event, outlining the “Dare Forward” strategic plan for 2030. The firm has undertaken significant measures, including thousands of job cuts in the U.S. and Italy, resulting in a downsizing of roughly 47,500 employees by 2023. Union backlash has followed.

The cost-saving efforts at Stellantis have been viewed as both necessary and harsh by executives and employees. With significant headcount reductions and strategic restructuring, the automaker aims to streamline operations and bolster financial performance. The aggressive approach underscores the company’s commitment to long-term growth and sustainability.



Read more at CNBC: Stellantis has achieved $9 billion in cost reductions from merger