CEO says Stellantis has achieved $9 billion in cost reductions from merger
How have additional job cuts in 2023 involving plant workers in the U.S. and Italy affected relations with unions?
The additional job cuts in 2023 involving plant workers in the U.S. and Italy have strained relations with unions. These job cuts have drawn the ire of unions in both countries. Several Stellantis executives described the cuts to CNBC as difficult but effective, while others, who spoke on the condition of anonymity due to potential repercussions, have described them as grueling to the point of excessiveness. This indicates that the job cuts have negatively impacted the relationship between Stellantis and the unions representing the affected workers.
How much has Stellantis saved in cost reductions since the merger of Fiat Chrysler and PSA Groupe in January 2021?
Stellantis has achieved 8.4 billion euros ($9 billion) in cost reductions since the merger of Fiat Chrysler and PSA Groupe in January 2021. This amount is more than double the initial expectations when the merger was announced in 2019 and an increase from the updated 5 billion euros in expected reductions within five years of the merger completion. The largest reduction was achieved in the sharing and consolidation of engineering assets for the company's vehicles, followed by purchasing.
What were the initial cost reduction expectations when the merger of Fiat Chrysler and PSA Groupe was announced in 2019?
When the merger of Fiat Chrysler and PSA Groupe was announced in 2019, the initial cost reduction expectations were 5 billion euros within five years of the completion of the merger.