Jeep-owner Stellantis announces mass layoffs, blames California

Published

5 months ago

December 8, 2023

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Stellantis has announced that it plans to cut what will likely be thousands of jobs from its Jeep plants in Detroit and Toledo, Ohio, blaming California’s emissions regulations for putting the company at a competitive disadvantage.

Stellantis, which also owns the Ram, Chrysler, Dodge, and Fiat brands, has indicated that 2,455 workers may be impacted at the Detroit plant where its makes the Jeep Grand Cherokee, as well as an additional 1,225 workers at a plant in Toledo that produces the Jeep Wrangler and Gladiator, according to The Detroit News. To curb production due to lagging sales of the Jeep brand, Stellantis plans to shift from an alternative work schedule to a traditional two-shift operation at the Toledo plant, and shave off one of its three shifts at the Detroit plant, which employs 4,600 people. The job losses will be in effect as early as February 5.

Stellantis, among other automakers, has been actively pushing back against Biden’s efforts to reduce carbon emissions and boost electric vehicles, arguing that strict regulations could result in billions of dollars of fines for the company.

According to Reuters, Stellantis has limited its shipments of both ICE vehicles and EVs to dealers in the 14 states that have adopted California’s emissions rules. Meaning, if you shopped in those states, only plug-in hybrid SUVs would be readily available in stock, but you’d have to special order an all-electric version or ICE models. Dealers in states that don’t adhere to California’s regulations (CARB) had the opposite scenario play out, of having no or very few hybrids in stock, and an ICE-only inventory. The rationale for all of this maneuvering, as The Drive points out, is in the 14 states that adhere to the California rules, manufacturers need to sell a certain percentage of zero-emissions vehicles and plug-in hybrids, meaning Stellantis had to prioritize these areas.

But here’s the rub for Stellantis: In 2020, Ford, Honda, Volkswagen, and BMW struck a special agreement with California to play by a different set of rules, where compliance is measured by sales nationwide, not just in CARB states. Stellantis says that changes the game and puts its company at a disadvantage because those numbers are easier to meet.

Volvo and Geely signed on to the pact with California following the original four automakers, and Stellantis tried to join but was turned down, according to Bloomberg. Why? Stellantis argues that it is being punished for when Chrysler publicly questioned California’s authority to establish its own rules back in 2019, along with other automakers, including General Motors and Toyota, as The Drive cited. Yesterday, Stellantis submitted a petition to California’s Office of Administrative Law, accusing the state of signing “underground regulatory scheme” with other automakers.

Electrek’s Take

Stellantis has been slow to shift to EVs, but it has been pouring billions into the effort. The Jeep Wrangler 4xe and Chrysler Pacifica hybrids are some of the best-selling EVs in California. But business hasn’t been steady: Last month, the automaker announced a recall of more than 32,000 vehicles due to a potential fire risk. And falling sales for ICE versions of the Jeep brand, mixed with high interest rates, has forced its hand into full-blown cost-cutting mode. And that, it says, means upending the lives of thousands of workers.

Still, it’s certainly not the first time the company has pointed a finger at the transition to EVs as the reason for layoffs. Earlier this year, Stellantis laid off about 1,350 workers from its plant in Illinois for those same reasons.

Interesting timing too, as the Big Three in Detroit – General Motors, the Ford Motor Company, and Chrysler (which Stellantis owns) – are also looking for ways to cut costs as they just agreed to what will amount to “record” pay increases following the United Auto Workers’ strikes this year. Lots of jobs are on the chopping block in the automobile industry, so we’ll be hearing that term “restructuring” a lot these days: Yesterday Volkswagen confirmed it too would cut thousands of jobs from its plant in an effort to slash $11 billion in costs.

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Environment

Is this the interior of Tesla’s upcoming ‘Robotaxi’?

Published

2 hours ago

May 21, 2024

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Is this the interior of Tesla's upcoming 'Robotaxi'?

Tesla has released a new video that includes some footage of a previously unseen vehicle interior. Could it be an early concept of the interior of the Robotaxi?

For the last few years, Tesla has been working on a vehicle designed from the ground up to be a self-driving vehicles. The company has been referring to it as ‘Robotaxi’.

CEO Elon Musk insists that Tesla is still dedicated to delivering its promised self-driving capability to existing vehicles delivered since 2016 through software update, but it also decided to build a new vehicle designed entirely around the fact that it will be driverless.

Not much is known about the vehicle other than hints that it won’t have a steering wheel or pedals, and that it will be “Cybertruck-like” in terms of design.

Now, Tesla has released a new video, which Musk wanted to make clear he wasn’t involved in, to try to encourage shareholders to vote for his $55 billion compensation package and moving the company’s state of incorporation to Texas:

Environment

Mercedes-Benz just opened more DC fast chargers at Buc-ee’s in Texas

Published

7 hours ago

May 20, 2024

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Mercedes-Benz just opened more DC fast chargers at Buc-ee’s in Texas

Mercedes chargers Buc-ee's — Photo: Mercedes-Benz High-Power Charging Network

Mercedes-Benz High-Power Charging just opened more DC fast chargers at Buc-ee’s stores in the Dallas-Forth Worth area.

Three new Mercedes DC fast charging stations are at Buc-ee’s in Fort Worth, Temple, and Royse City. Mercedes asserts that every one of its chargers offers up to 400 kW of power.

It’s also adding 12 more charging stations at Buc-ee’s in the Dallas-Fort Worth, San Antonio, and Houston metro areas – also known as the Texas Triangle, home to 68% of Texans:

Buc-ee’s isn’t your typical convenience store – they’re huge, with some stores covering over 50,000 square feet, and they offer a wide variety of items, including snacks, beverages, fresh food, clothing, home decor, and Texas-themed merchandise. It’s known for its homemade fudge, jerky, and beaver nuggets (caramel-coated corn puffs). Most Buc-ee’s locations are open 24 hours a day, seven days a week.

In November 2023, Mercedes announced it had made an agreement with Buc-ee’s to build EV charging hubs at most of its existing stores. Mercedes is aiming to have around 30 online by the end of the year. There are currently 48 Buc-ee’s locations across the US South, 34 of which are in Texas.

When I spoke to Mercedes-Benz High Power Charging CEO Andrew Cornelia last year, he was passionate about the importance of placing EV chargers near amenities that travelers need.

Mercedes offers open access for all EV drivers, including roaming with other charging networks. Its charging hubs support contactless payments with credit cards or smartphone wallets.

The first Mercedes DC fast charging station came online last November at its headquarters in Sandy Springs, Georgia. Mercedes-Benz plans to deploy 2,500 high-powered chargers in 400 hubs by 2027.

Texas is the US’s No. 1 producer of clean energy and ranks fourth in public EV charging. However, to meet driver demand, the state needs around 95,000 more public chargers by 2027.

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Environment

Polestar (PSNY) stock faces potential Nasdaq de-listing after failing to file its annual report

Published

7 hours ago

May 20, 2024

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Polestar (PSNY) stock faces potential Nasdaq de-listing after failing to file its annual report

Another EV stock may be removed from the Nasdaq exchange. After failing to file its annual report, Polestar (PSNY) received a notice from the Nasdaq as the company faces a possible de-listing.

Polestar, Volvo’s former high-performance unit, was established as an EV brand in 2017 under Geely’s control.

Since launching the Polestar 2, its first all-electric vehicle, the brand has expanded into 27 markets globally. The electric car has even become a top seller in several key markets like Norway, Sweden, and Germany.

However, like many EV startups, Polestar has hit its fair share of hurdles. After cutting guidance late last year (from 80K to 60K), Polestar still missed its target, delivering 54,600 vehicles last year.

In February, Volvo announced plans to sell 62.7% of its stake in Polestar as it looks toward its next growth stage. Volvo also confirmed it will “not provide further funding to Polestar” outside of its existing $1 billion outstanding convertible loan.

The news came after Polestar announced plans to cut 15% of its global workforce amid slowing EV sales earlier this year.

Polestar stock facing potential Nasdaq de-listing

After failing to file its annual report for the fiscal year ending December 31, 2023, Polestar received a deficiency notice from the Nasdaq.

The notice states Polestar is not in compliance with its listing rules, which require the timely filing of periodic financial reports.

Polestar-4-price — Polestar 4 (Source: Polestar)

Polestar said the notice has no immediate impact on the company’s listing. However, under the Nasdaq listing rules, Polestar has 60 days to submit an action plan. If Nasdaq accepts it, Polestar could be issued an additional 180 days from the notice date, or until November 2024, to regain compliance.

The company has already received consent from lenders under its nearly $1 billion 3-year loan facility for the late filing. Polestar says it is fully committed to regaining compliance.

Polestar is working to file the annual report “as soon as practicable” and to report Q1 2024 earnings shortly after.

Polestar stock was down over 13% on Monday following the potential de-listing notice. PSNY shares are now down over 50% this year, hitting their lowest prices since going public.

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