The company cited stagnating global auto sales, too much factory capacity in the auto industry compared with sales prospects and a slower than expected transition to electric-powered, software-controlled vehicles.
The news comes two days after Ford Motor Co. announced plans to drop 4,000 jobs in Europe for much the same reasons. and with Volkswagen employees threatening work stoppages over what they say management has told them are plans to close as many as three factories in Germany. Revenue at Stellantis, created through the 2021 merger of PSA Peugeot and Fiat Chrysler Automobiles, tumbled 27% in its most recent quarter that ended this fall.
Back in August, Detroit based Ford Motor announced it was delaying production of a next-generation all-electric pickup truck at a new plant in Tennessee and canceling plans for a three-row electric SUV.
Instead, Ford said it will prioritize the development of hybrid models.
