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Automaker Stellantis plans for workers to work remotely more often than not

The logo of Stellantis, the fourth largest automaker in the world, which will start trading in Milan and Paris following the completion of the merger of Fiat Chrysler and Peugeot maker PSA, will be at the main entrance of the FCA Mirafiori plant in Turin, Italy on January 18, 2021 to see.

Massimo Pinca | Reuters

DETROIT – When Fiat Chrysler employees, now Stellantis, get their expected returns in offices later this year, they will do so with a new company and a more flexible work schedule.

The automaker is launching a hybrid work initiative called “New Era of Agility”. The goal is for the majority of the company’s employees to work remotely most of the time. This includes 17,000 employees in North America, the majority of whom work in the Detroit area. Shannon Dziuda, director of special human resources projects for Stellantis North America, told CNBC.

“We want the decision in a facility to be deliberate, based on what works best for individuals and the company, and to support the health and wellbeing of the team,” she said during an interview on Friday.

As part of the plan, the company expects employees who combine remote and in-office work to do an average of 70% remote and 30% on-site work, she said. The division is a guideline, not a mandate, according to Dziuda. This does not include hourly manufacturing workers or employees who must be physically present in laboratories or elsewhere to do their job.

The decision to create such a program was made after the company received feedback from employees, many of whom have been working remotely for a year due to the coronavirus pandemic, Dziuda said. Similar announcements from General Motors and Ford Motor follow. However, GM and Ford have not published percentage guidelines.

Stellantis is planning a four- to six-week pilot trial for around 450 employees at the company’s North American headquarters in Auburn Hills, Michigan, starting in October. After that, Dziuda said, Stellantis will make changes to work areas and offices to meet the expected needs of all employees working on the new hybrid planning.

“The pilot will tell us what additional changes we may need to make to space, both physically and digitally,” she said.

The schedule for employees returning to offices is based on local and state regulations, but Dziuda said Stellantis currently plans to bring them back in late 2021 and early next year.

Around 15,000 people, including 12,000 employees, work at the North American headquarters and the technology center. About 10% are currently in the facility because their work requires them to be in the buildings.

Stellantis, like other companies, believes that its flexible work policy will help attract new employees.

“We want to be able to retain our top talent and attract new top talent and diverse talent,” said Dziuda. “As we know, a diverse culture leads to better innovations.”

According to a recent Prudential survey of 2,000 adults who were able to work from home during the pandemic, 87% want it to be possible after their coronavirus risk subsides.

Stellantis was formed in January through a $ 52 billion merger between Fiat Chrysler and French automaker PSA Groupe. Its CEO is Carlos Tavares, former CEO of PSA. Its chairman is John Elkann, who held the same position at Fiat Chrysler and is a descendant of the founder of the Italian automaker Fiat.

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Stellantis closing 5 North American vegetation attributable to chip scarcity

A member of United Auto Worker leaves the Fiat Chrysler Automobiles Warren truck plant after the first shift on May 18, 2020 in Warren, Michigan.

Gregory Shamus | Getty Images

A global shortage of semiconductor chips is forcing Stellantis to temporarily close five North American plants starting next week, the company confirmed on Friday afternoon.

The affected plants are in Illinois, Michigan, Mexico and two in Ontario, Canada. They build a range of products for the company – from older Ram 1500 pickup trucks and Jeep models to minivans and Dodge and Chrysler cars. The facilities, which used to belong to Fiat Chrysler, are expected to be closed from Monday to early or mid-April, according to the company

“Stellantis continues to work closely with our suppliers to reduce the manufacturing impact caused by the various supply chain problems in our industry,” the company said in a statement emailed to CNBC. A Stellantis spokeswoman declined to indicate how many production units are likely to be lost.

Semiconductors are, among other things, key components for infotainment, power steering and brakes in new vehicles. Suppliers have moved semiconductors away from the automotive industry as several plants were closed due to Covid in the past year.

Consulting firm AlixPartners estimates the chip shortage will reduce global auto industry sales by $ 60.6 billion this year.

The deficiency affects every automaker differently. Several manufacturers, including General Motors, Ford Motor and the Chinese EV start-up Nio, also announced production cuts or plans to extend downtime at facilities already affected this week.

Vehicles affected by Stellantis’ production stops include the Chrysler 300 sedan, as well as the Pacifica and Voyager minivans, Dodge Charger and Challenger vehicles, Jeep Cherokee and Compass SUVs, and the Ram 1500 Classic pickup. A newer version of the Ram 1500 continues to be produced at a different facility in Michigan.

Stellantis is the merged automaker of Fiat Chrysler and France-based Groupe PSA. In the USA, the core brands include Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram.

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Stellantis rallies on first day of commerce after $52 billion merger

Flag with the Stellantis logo on the front entrance of the FCA Mirafiori plant on January 18, 2021 in Turin, Italy.

Stefano Guidi | Getty Images

LONDON – Stellantis, the product of the $ 52 billion merger between Fiat Chrysler Automobiles and Peugeot, was well received by European investors on Monday’s first day of trading.

The shares of the fourth largest automaker in the world, created by the volume of the merger on Saturday, rose 7.5% in the afternoon after the IPO in Milan and Paris.

The shares, listed on the Milan Stock Exchange, traded at a price of € 12.758 per share with a market capitalization of € 39.2 billion ($ 47.3 billion). By the afternoon, business in Europe had risen by 13.55 euros per share.

In a virtual launch on the Borsa Italiana website, Carlos Tavares, CEO of Stellantis, former CEO of PSA Group, said the merger would bring shareholders € 25 billion in added value over the coming years due to projected cost reductions.

“All of our employees and management teams are fully focused on the value creation that is anchored in the FCA-PSA merger and the creation of Stellantis,” he added.

Chairman John Elkann said the next decade will likely “redefine mobility as we know it”.

“We have the size, the resource, the diversity and the knowledge to capitalize on the opportunity of this new era in transportation,” he said.

“Our goal is to create something unique and great by providing our customers with distinctive, safe, comfortable, innovative and sustainable vehicles and mobility services.”

The stock will be launched in New York when Wall Street opens on Tuesday. US markets are closed on Monday for a public holiday. After that, Tavares will hold his first press conference as Stellantis CEO.

The start was the highlight of the liaison talks that began at the end of 2018. The auto industry is trying to control a seismic shift in consumer demand towards electric vehicles.

In advance of the transaction, S&P Global Ratings improved the FCA’s credit rating and forecast that Stellantis would benefit from greater size, geographic diversity and a strong capital structure.

“The combined company will have a solid balance sheet, good free cash flow prospects and a large liquidity buffer,” S&P analysts Vittoria Ferraris and Margaux Pery said in a note.

“In our base case, Stellantis’ net cash position will be around € 14 billion unadjusted. This will provide the Group with a significant buffer for market conditions that remain exposed to COVID-19-related mobility restriction risks during the first half of 2021 and could be below suffer from the gradual reduction in government support. “