With the automotive industry facing its fair share of challenges these days, more than one company is in the process of trimming its workforce. That includes Ford, as well as its cross-town rival General Motors, which have executed multiple rounds of job cuts as of late. Meanwhile, Stellantis has faced all sorts of financial woes in recent months that led to the ouster of its CEO, Carlos Tavares, and even though it has put layoffs on hold – for now at least – that automaker will now offer broad buyouts to some of its United Auto Workers (UAW) employees, it seems.
According to the Detroit Free Press, Stellantis recently sent an offer letter to hourly UAW workers at more than 20 of its plants located in the Detroit and Toledo areas, as well as some Mopar locations – a list that includes the Sterling Heights Assembly Plant, Warren Truck, Detroit Assembly Complex, Toledo Assembly Complex, Chelsea Proving Grounds, and CTC facilities. According to the letter, Stellantis is offering voluntary buyouts with lump sum payments for workers that have at least one year of service under their belt.
Those lump sum payments do vary based on length of service, from around $50,000 for one to 15 years up to $72,000 for those with 25 years or more. Workers will also receive six months of benefits following their exit from the company, minus dental, but management ultimately gets to decide which employees can take advantage of it. Some will be eligible to depart the company immediately, though others may have to continue working through the end of September to qualify.
It’s currently unclear how many buyouts Stellantis is offering, but the company is coming off a challenging 2024 that has left it making tough decisions in a number of areas. That includes selling off its Arizona Proving Grounds, which the automaker previously purchased from Ford.
Comment
With the current brain-dead tariff program this will just be the start of this type of action. Domestic manufacturers are not going to invest any money increasing US production capabilities until they see stability in the economy, something that is currently missing.