The lay-offs will eventually be followed by the creative destruction amongst the EV manufacturers.
The job losses will begin in June, Griffin wrote, and are expected to be permanent.
In February, the company announced it was cutting 10% of its workforce, which sent the stock plummeting from the dizzying heights it had achieved after its 2021 initial public offering.
Stellantis CEO suggests China EV battle is coming for Europeâs 13.8 million auto workers: âThe EV race has become a cost-cutting raceâ
Europeâs carmakers havenât been shy to make their thoughts known on the millions of cheap Chinese electric vehicles flooding the continent, occasionally with somewhat apocalyptic tones. Some have called for steep import tariffs to save the industry, while others are pushing loudly for joint efforts to ramp up homegrown, affordable EVs to fend off the âonslaughtâ.
Stellantis CEO Carlos Tavares, who oversees brands like Fiat, Alfa Romeo and Peugeot, has been among the most vocal in his warnings.
And the millions of people linked to the sector might not like what Tavaresâs latest ominous comments mean for their livelihoods .
European jobs at risk
âYou are going to see a huge shift of the supplier base. The sourcing will move from the Western world to the best-cost countries," Tavares said Wednesday at the Bernstein Strategic Decisions conference.
"The EV race has become a cost-cutting race.â
While he didnât explicitly say it, Tavaresâs comments point to the threat of job losses on the continent.
Chinese EVs are much more cost-effective than their European competitors, thanks to a combination of state subsidies, lower labor costs and crucial control of the entire EV supply chain, particularly batteries.
Given higher sale prices in Europe, this makes the continent extremely attractive to them.
The manufacturer is set to launch an affordable EV in Europe later this year through a partnership with Chinese group Leapmotor. The cars are expected to start at a price tag under âŹ20,000 ($21,700).
The Stellantis approach apparently is if you canât beat them; join them.