Stellantis Group is implementing a recruitment strategy focused on finding engineers in countries where salaries are lower, such as Morocco, India and Brazil, in order to reduce personnel costs
As reported by Bloomberg, the automotive group Stellar aims to recruit approx two-thirds of engineers all over the world with fees around 50,000 euros per year per employee, compared to the five times higher amounts it would pay in Paris or Detroit to reduce costs.
This strategy reflects Stellantis' need to reduce labor costs to address slowing demand for electric vehicles and price competition in the battery-electric vehicle market, in order to make zero-emission vehicles more accessible to consumers. Engineers in countries like Brazil e India can receive compensation up to 20-30% less than their colleagues in the West.
Meanwhile, Stellantis' production numbers show a solid return in the first quarter of 2024, with over 30,000 vehicles sold and a market share of 41,3%. Fiat Professional is the leading brand in the commercial vehicle market, followed by Citroën, Peugeot and Opel, which are recording good results in the first four months of the year.
Stellantis starts the campaign to reduce personnel costs
The director of Commercial Vehicles Business Unit of Stellantis in Italy, Gianluca Zampese, expressed optimism for the rest of the year, underlining the renewal of the van range and the arrival of new second generation electric products, which will allow the company to remain at the forefront in providing innovative solutions for customer needs. Stellantis is not the only automotive group to adopt this strategy: other companies like Tesla, Volkswagen e Renault they are downsizing their workforce and moving production to lower-cost locations. However, according to the American newspaper, Stellantis is currently the most aggressive in implementing this strategy, aiming to hire around two-thirds of its engineers in low-cost countries in the long term.
Furthermore, there are concerns regarding the effects on plant productivity, as highlighted by American unions reporting production problems at the plant Sterling Heightsin Michigan, due to a lack of technical personnel.
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