Welcome to Extreme Investor Network, where we provide you with unique insights and valuable information on the latest business news. Today, we will be discussing Stellantis NV’s decision to shut down and sell its large vehicle proving grounds in Arizona by the end of this year.
This move is part of the automaker’s cost-cutting measures under the leadership of CEO Carlos Tavares. Facing pressure from Wall Street, dealers, and the United Auto Workers union due to lagging financial performance, layoffs, and overall business decisions, Stellantis is streamlining its operations to ensure future competitiveness in the rapidly changing global market.
The Arizona Proving Grounds, covering 4,000 acres between Phoenix and Las Vegas in Yucca, Arizona, has been a key testing and development site for Stellantis since Chrysler purchased the property from Ford Motor in 2007. With 69 employees as of July 2019, including workers represented by the UAW, the closure of this facility will have implications for the workforce.
Stellantis plans to utilize a proving grounds facility in Arizona owned by Toyota Motor starting next year, as part of its real estate evaluations and ongoing cost-cutting efforts. The company is working with the UAW to provide employees with special packages or the option to transition to the new operations.
This decision is in line with Stellantis’ broader strategy of optimizing its footprint and reducing costs. The automaker has already significantly reduced its U.S. workforce in recent years, outsourcing engineering efforts to lower-cost countries like Brazil, India, and Mexico. By recruiting a majority of its engineering workforce in these regions, Stellantis aims to reduce costs and improve efficiency.
At Extreme Investor Network, we keep you informed about the latest developments in the business world, providing you with in-depth analysis and expert insights to help you make informed investment decisions. Stay tuned for more updates on Stellantis and other key players in the industry.