Stellantis Will Cut About 630 Temporary Employees At Mulhouse In France

In a move aimed at enhancing profitability amid changing market dynamics, Stellantis has announced the discontinuation of the night shift at its Mulhouse Assembly Plant in France, effective March 4, 2024. The decision, affecting approximately 600 employees, comes just two years after the reintroduction of the night shift.

The management of the Stellantis plant in Mulhouse communicated this shift during the Economic and Social Committee (CSE) meeting on January 24, 2024. The decision primarily impacts temporary positions, both in the night half-shift and day shift, with plans to facilitate the reclassification of indefinite night workers. Ronald Laventin, a French Democratic Confederation of Labour (CFDT) delegate, estimates that around 630 positions will be affected, and these changes will be implemented at the conclusion of temporary contracts.

The Mulhouse site, which currently employs 4,250 individuals and 1,700 temporary workers, will witness a reduction in daily production from 1,030 to 830 vehicles. This includes models such as the Peugeot 308 sedan and station wagons with various engine options, the Peugeot 408 and 508, and the DS Automobiles DS7 with both internal combustion and hybrid variants.

According to union representatives, the decrease in production is attributed to a combination of factors. The European market’s downward trend, coupled with geopolitical uncertainties and upcoming elections, has created a challenging environment. Additionally, the reduction or cessation of financial aid in Europe for electric and hybrid vehicles, particularly in Germany, along with aggressive price competition, has further impacted the group’s overall activity.

The decision is seen as a precautionary measure by the management team in light of the complex business landscape. Laurent Gautherat, a CFE-CGC delegate for the site, notes that the move is part of the company’s strategy to navigate the current challenges effectively. The Stellantis’ Mulhouse Assembly Plant, boasted a workforce of 10,400 employees in 2007.