Welcome to the Daily 5 report for Monday, Dec. 1. Let the countdown to the holiday season and the new year begin.
It's hard to believe it has been 18 years since the DaimlerChrysler divorce. With their ill-fated "marriage of equals" long behind them, Mercedes-Benz (formerly Daimler) and Stellantis (formerly Chrysler) have moved on, had their share of ups and downs, and are now reversing some decisions that have gotten them in trouble.
Mercedes CEO Ola Källenius is facing what some investor representatives call a "last chance" to put the German automaker back on track, a task that they say requires a fundamental, high-stakes reversal of the ultraluxury strategy he unveiled in 2022, Automotive News Europe's William Boston reports.
Källenius announced the luxury-focused plan, "The Economics of Desire," at a capital markets day in May 2022. He steered the premium automaker even more upscale, deemphasizing compact A- and B-Class models and giving more autonomy for the Maybach and AMG brands, as well as G-Class luxury SUVs.
Analysts say Mercedes relied too heavily on the high end of its product range after the COVID-19 pandemic, and the benefits began to unravel as it could no longer keep prices high and faced increased competition.
Meanwhile, Stellantis CEO Antonio Filosa is rebuilding the company's North American staffing after former boss Carlos Tavares dramatically slashed head count globally.
The automaker has hired hundreds of salaried employees at its North America headquarters in Auburn Hills, Mich., in recent months as it moves to boost U.S. manufacturing. It is adding nearly 2,000 direct, white-collar jobs in engineering, manufacturing, quality and other departments, reports Kurt Nagl of Crain's Detroit Business, an affiliate of Automotive News.
The company has renewed focus on North America under Filosa, who took over for Tavares after a disastrous performance in North America. Under Tavares, the company had acrimonious relationships with parts suppliers, dealers and UAW officials — which Filosa's leadership team has vowed to fix.
Unlike his predecessor, Filosa is U.S.-based at the Chrysler Tech Center, signaling how seriously the company is taking the rebuild.
For the first time in years, the automaker is adding white-collar employees in North America rather than conducting layoffs or buyouts. The company declined to say how many of the nearly 2,000 new employees have already been hired and how many roles it is still working to fill.
That's it for now. Have a great rest of your day! If you want to view this story on your browser, click here.
— Omari Gardner, director of content and commentary
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