Stellantis aims to avoid Volkswagen plant closure scenario

CEO says Stellantis is working hard to avoid plant closures like Volkswagen

Stellantis, the world's fourth-largest automaker, is working hard to avoid plant closures like the one announced by Volkswagen this week, CEO Carlos Tavares said on Thursday.

Stellantis has a strong track record of cost-cutting

Stellantis, which was formed by the merger of Fiat Chrysler and PSA Group in January 2021, has a strong track record of cost-cutting. The company has already announced plans to cut 2,000 jobs in Italy and close a plant in France.

Stellantis is investing heavily in electric vehicles

Stellantis is also investing heavily in electric vehicles (EVs). The company plans to launch 10 new EVs by 2025 and invest $30 billion in EV development over the next five years.

Stellantis is confident in its future

Tavares said that Stellantis is confident in its future. The company has a strong product lineup and is well-positioned to compete in the global automotive market.

“We are not going to close plants,” Tavares said. “We are going to invest in our plants and our people.”

Volkswagen announced on Wednesday that it will close its plant in Emden, Germany, by 2025. The plant employs about 8,000 workers and produces the Passat sedan and wagon.

Volkswagen said that the closure is necessary due to the declining demand for sedans and the rising costs of producing EVs.

Stellantis is not the only automaker that is facing challenges. General Motors, Ford, and Toyota have all announced plans to close plants in recent years.

The automotive industry is undergoing a major transformation as the world shifts to EVs. Automakers are facing pressure to reduce costs and invest in new technologies.

Stellantis is confident that it can weather the storm and emerge as a stronger company. The company has a strong track record of cost-cutting and is investing heavily in EVs.

Only time will tell if Stellantis can avoid the same fate as Volkswagen. But the company is certainly taking steps to ensure its future.