Carlos Tavares, CEO of Stellantis, speaks to the media on June 13, 2024 after the company's Investor Day at its North American headquarters in Auburn Hills, Michigan.
Michael Wayland/CNBC
AUBURN HILLS, Mich. — Stellantis has achieved 8.4 billion euros ($9 billion) in cost reductions from the merger of Fiat Chrysler and PSA Groupe that created the company in January 2021, CEO Carlos Tavares said Thursday.
This amount represents more than double the initial expectations when the merger was announced in 2019, and an increase from the expected reductions of 5 billion euros made within five years of the completion of the merger, which formed one of the largest car manufacturers in the world.
Tavares said the largest reduction was achieved in sharing and consolidating the company's vehicle engineering assets, followed by purchases.
Cutting costs has been mission critical for the veteran auto executive. Other cost-saving measures included restructuring the company's supply chain and operations, as well as reducing headcount.
“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 automakers. 2030 “Bold Forward” Strategic plan.
Since the merger was approved in December 2019, Stellantis has reduced headcount by 15.5%, or approximately 47,500 employees, through 2023, according to public filings. Additional job cuts this year involving thousands of factory workers in the United States and Italy have angered unions in both countries.
Several Stellantis executives described the cuts to CNBC as difficult but effective. Others, who spoke on the condition of anonymity because of the potential repercussions, described it as overly stressful.
This is breaking news. Please check back for additional updates.
“Extreme travel lover. Bacon fanatic. Troublemaker. Introvert. Passionate music fanatic.”
More Stories
Tesla is recalling all of its Cybertrucks for the second time
The European Union accuses Microsoft of antitrust violations over Teams
CDK Global describes the cyber attack that paralyzed its software platform as a “ransomware event.”