Stellantis Will Cut About 630 Temporary Employees At Mulhouse In France

After American Cuts, Stellantis Looks To Get Rid Of Some Of Its Temporary Workforce...

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.

Robert S. Miller

Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only the Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.

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The next two years are going to be tough for automotive manufacturers. Early adopters of EVs are mostly satisfied, mainstreamers are waiting for prices to settled, and we the laggards will lag, so they can't attract customers with EVs. ICE buyers likely bought in the last few years (based on sales figures) so they are 4-8 years from replacement. That leaves accident replacements neigh of a breakout vehicle.

Fuel prices are going to hover around where they are unless the middle east erupts into chaos (irrespective of who win elections anywhere)
EV range is not going to change significantly in the next three years (although it would be interesting to see how BE powered ICE charged models draw attention)
Folks are going to need lesser equipped sub $35k vehicles to purchase and there are few out there these days, especially from the Mopar family. This will hold true if their financial situation requires them to drop/end their existing lease of a 70+k SUV/Truck and $900/mo payment.

If Chrysler is going to be all E (which suggests 30K-80K price points), the Dodge is all P (which is lower price point but not mass appealing), and Jeep is all Jeep, and RAM is all Truck/Commercial, does that really leave FIAT as the opportunity to introduce vehicles that are $25-$35k with less features and maybe smaller in size? That is not a good position to be in if my postulate holds true.


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