Multinational automaker Stellantis is making a big push to hire lower-wage engineers in Brazil, India, Mexico and Morocco after laying off 400 Americans in engineering, software and technology in March.
On March 22nd, Stellantis executives announced 400 salaried engineering and software employees in Auburn Hills, Michigan will be laid off to cut costs.industry people Said Automotive News reported that Stellantis is making gradual job cuts in the U.S. to avoid disclosure under the Warning Act.
In response to layoffs of U.S. employees, Stellantis management is looking to hire engineers at a fraction of the cost by hiring in Brazil, India, Mexico and Morocco. Stellantis must pay U.S. engineers between $150,000 and $200,000, while automakers can pay engineers in low-wage countries just $53,000 a year.
At the same time, Stellantis CEO Carlos Tavares is currently reign As the automaker’s highest-paid executive, he secured a $39 million compensation package in April.
Sources told Automotive News that Stellantis wants to keep about two-thirds of its engineers in these low-wage countries to reduce costs even as Tavares’ salary increases. . Stellantis hopes to hire about 500 engineers in Brazil alone, while other engineering jobs will be moved to Mexico.
The outsourcing plan comes as insiders say it poses significant complications for the automaker in terms of production issues.
For example, as reported by Automotive News, Stellantis has sent French and Italian engineers to India to solve problems with a smart car platform developed by Tata Consulting Services (TCS), a well-known outsourcing company. I needed to.
Similarly, Stellantis’ Sterling Heights, Michigan, truck plant is having trouble starting production due to a lack of engineers nearby. Last month, executives announced: dismiss The factory has about 200 workers.
“I feel bad for Stellantis. Honestly, the leadership is pathetic,” United Auto Workers (UAW) President Sean Fein said of the layoffs. “There’s a CEO across the pond who wants to talk about things like the need to cut costs, but he still couldn’t give up a 56 percent raise.”
John Binder is a reporter for Breitbart News. Please email jbinder@breitbart.com. Follow him on Twitter here.
