{"id":115736,"date":"2024-10-18T23:42:45","date_gmt":"2024-10-18T16:42:45","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=115736"},"modified":"2024-10-18T23:42:45","modified_gmt":"2024-10-18T16:42:45","slug":"stellantis-to-sell-shutter-large-proving-grounds-amid-cost-cutting","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=115736","title":{"rendered":"Stellantis to sell, shutter large proving grounds amid cost-cutting"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108042960\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Carlos Tavares, chief executive officer of Stellantis NV, speaks to the media at the Stellantis auto manufacturing plant in Sochaux, France, on Thursday, Oct. 3, 2024.\u00a0<\/p>\n<p>Nathan Laine | Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>DETROIT \u2014 Automaker <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><a href=\"https:\/\/www.cnbc.com\/quotes\/STLA\/\">Stellantis<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> plans to shutter and sell its large vehicle proving grounds in Arizona at the end of this year, CNBC has learned.<\/p>\n<p>The decision is the latest cost-cutting measure by the trans-Atlantic automaker under CEO Carlos Tavares, who has been increasingly under pressure from Wall Street, <a href=\"https:\/\/www.cnbc.com\/2024\/09\/12\/dealers-uaw-condemn-stellantis-ceo-cuts-sales-declines.html\">dealers and the United Auto Workers<\/a> union amid the company&#8217;s lagging financial performance, layoffs and overall business decisions.<\/p>\n<p>The Arizona Proving Grounds covers 4,000 acres between Phoenix and Las Vegas in Yucca, Arizona. It has been used for vehicle testing and development for the automaker since then-Chrysler purchased the property for $35 million from <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\"><a href=\"https:\/\/www.cnbc.com\/quotes\/F\/\">Ford Motor<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> in 2007.<\/p>\n<p>As of July 2019, the operations employed 69 people, including workers represented by a local chapter of the UAW, <a href=\"https:\/\/media.stellantisnorthamerica.com\/newsrelease.do?id=18403\" target=\"_blank\" rel=\"noopener\">according to the automaker.<\/a><\/p>\n<p>The closure was confirmed by three people familiar with the plans who agreed to speak on the condition of anonymity because the matters are private.<\/p>\n<p>Stellantis plans to use a proving grounds in Arizona owned by <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-5\"><a href=\"https:\/\/www.cnbc.com\/quotes\/TM\/\">Toyota Motor<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> beginning next year, according to two people familiar with the decision. Toyota opened its operations, which are costly to maintain, for other companies <a href=\"https:\/\/pressroom.toyota.com\/toyota-adds-the-arizona-mobility-test-center-to-its-proving-grounds-for-industry-availability-as-a-vehicle-development-resource\/\" target=\"_blank\" rel=\"noopener\">to use in 2021.<\/a><\/p>\n<p>Stellantis confirmed the closure Friday morning, citing the company&#8217;s ongoing cost-cutting and real estate evaluations.<\/p>\n<p>&#8220;Stellantis continues to look for opportunities to improve efficiency and optimize its footprint to ensure future competitiveness in today&#8217;s rapidly changing global market,&#8221; the company said in an emailed statement.<\/p>\n<p>The automaker also said it is &#8220;working with the UAW to offer proving ground employees special packages or they can choose to follow their work in a transfer of operations&#8221; but that employees could be placed on an &#8220;indefinite layoff, which would entitle them to pay and benefits for two years.&#8221;<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108044060\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108044060\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000354124\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108045036-1728420645088-gettyimages-2175569209-AFP_36J24YQ.jpeg?v=1728420689&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"Here's why Stellantis is struggling\"\/><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Stellantis, like most automakers, has several proving grounds in different climates and geographies to develop and test vehicles ahead of selling them to consumers. Stellantis&#8217; other major U.S. proving grounds facility is a 4,000-acre campus located west of Detroit in Chelsea, Michigan.<\/p>\n<p>Stellantis&#8217; complex in Arizona was one of 18 facilities the <a href=\"https:\/\/uaw.org\/wp-content\/uploads\/2023\/11\/Stellantis_PM___P__BOOK-Hourly_book-WEB.pdf\" target=\"_blank\" rel=\"noopener\">company notified the UAW<\/a> it could potentially close during the union&#8217;s contract negotiations last year with Stellantis.<\/p>\n<p>A majority of the other operations were parts and distribution centers that were expected to be consolidated into &#8220;mega sites,&#8221; as well as the company&#8217;s massive 500-acre campus in metro Detroit formerly <a href=\"https:\/\/www.cnbc.com\/2023\/09\/18\/uaw-strike-stellantis-could-close-18-facilities-under-deal.html\">used as Chrysler&#8217;s world headquarters<\/a>.<\/p>\n<p>The status of the other properties was not immediately clear, however, local and state politicians, including <a href=\"https:\/\/www.crainsdetroit.com\/automotive\/whitmer-talks-stellantis-ceo-keep-hq-michigan\" target=\"_blank\" rel=\"noopener\">Michigan Gov. Gretchen Whitmer<\/a>, have expressed concerns that Stellantis could move to shutter the former headquarters in Auburn Hills, Michigan.<\/p>\n<\/div>\n<div class=\"group\">\n<p>Stellantis has significantly reduced the number of its U.S. employees in recent years amid <a href=\"https:\/\/www.cnbc.com\/2024\/06\/13\/stellantis-has-achieved-9-billion-in-cost-reductions-from-merger.html\">Tavares&#8217; cost-cutting measures<\/a>.<\/p>\n<p>Stellantis has reduced employee head count by 15.5%, or roughly 47,500 employees, between December 2019 and the end of 2023, including a 14.5% reduction in North America, according to public filings. That doesn&#8217;t include further head count reductions and layoffs this year.<\/p>\n<p>The automaker had only about 11,000 U.S. salaried employees at the end of last year. That compared with 53,000 at <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-14\"><a href=\"https:\/\/www.cnbc.com\/quotes\/GM\/\">General Motors<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and 28,000 at Ford.<\/p>\n<p>The reductions have occurred as Stellantis has attempted to outsource many engineering efforts to lower-cost countries such as Brazil, India and Mexico, according to several people familiar with the moves.<\/p>\n<p>Bloomberg News <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-05-02\/stellantis-hires-50-000-engineers-in-brazil-india-to-cut-costs\" target=\"_blank\" rel=\"noopener\">earlier this year reported that Stellantis<\/a> moved to recruiting a majority of its engineering workforce in those countries, where the cost per employee amounts to roughly \u20ac50,000 ($53,000) or less per year \u2014 far less than similar positions in the U.S. and Europe.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2024\/10\/18\/stellantis-arizona-proving-grounds-cost-cutting.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Carlos Tavares, chief executive officer of Stellantis NV, speaks to the media at the Stellantis auto manufacturing plant in Sochaux, France, on Thursday, Oct. 3, 2024.\u00a0 Nathan Laine | Bloomberg &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=115736\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-115736","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/115736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=115736"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/115736\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=115736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=115736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=115736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}