According to foreign media reports, Stellantis Chief Financial Officer Natalie Knight said that the company expects spending on electric vehicle steel and raw materials in the second half of the year to be approximately US$200 million lower than in the first half of the year.
Natalie Knight.
Photo source: Stellantis, As the global automotive industry accelerates its transition to electric vehicles, Stellantis has launched a global cost-cutting campaign.
In recent months, Stellantis CEO Carlos Tavares has been leading the company in a series of strategic adjustments to increase efficiency.
These adjustments include issuing buyout offers to some employees and firing some salaried employees and hourly workers.
, Natalie Knight, the company’s chief financial officer, said in a statement this month that Stellantis plans to achieve more than $200 million in cost cuts by the end of the year through measures such as layoffs.
Tang Weishi also said that at least two U.S. factories “need to be significantly transformed,” which may involve more layoffs and human resources adjustments.
Currently, the company is downsizing its North American workforce and outsourcing some engineering work to partners or professional agencies.
At the same time, the company plans to integrate its product line onto a few multifunctional platforms that can support multiple body styles and power systems, helping the company reduce product development complexity and costs.
Stellantis has begun recruiting most of its engineering staff in lower-cost countries such as Morocco, India and Brazil.
At the same time, the company is considering purchasing 80% of parts in the regions with the best prices to further reduce costs.
Tang Weishi pointed out last month that the additional cost of producing electric vehicles may push automakers to seek regions with lower parts and labor costs around the world, and continuously optimize the layout of their supply chains and production bases to reduce costs and maintain competitiveness.
At this month’s Investor Day, Natalie Knight mentioned that Stellantis “has about 90% of its outsourcing projects to countries with the lowest cost.
” In addition, Stellantis is streamlining its logistics operations by introducing more internal distribution.
Maxime Picat, the company’s chief procurement and supply chain officer, said the company will purchase more than 1,000 trucks in Europe to control vehicle transportation between factories and end customers.
Picat pointed out that in the second half of this year, outbound logistics costs in Europe will drop by 25% compared with the same period last year.
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