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Stellantis (Baa1/BBB+): Job Cuts

CONSUMER CYCLICALS

• Stellantis cutting 2% of global engineering, technology, and software staff.

• Not material, but interestingly they describe industry uncertainties as “unprecedented”.

• Another reminder of the difficult outlook for OEMs navigating the investment heavy EV transition, with growth there set to slow this year. Cost input pressures and price competition (particularly in China) continue to weigh on the sector.

• Despite this, spreads have performed well YTD with still low unemployment helping the consumer.

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