Stellantis CEO Carlos Tavares poses during a presentation at the New York International Auto Show on April 5, 2023 in Manhattan, New York.
David Dee Delgado | Reuters
Detroit — Chrysler’s parent company Stellantis is offering to buy out about half of its U.S. white-collar workforce in an effort to reduce headcount and costs at the automaker’s North American operations.
The company announced Monday that voluntary severance packages will be offered to 6,400 of its 12,700 U.S. non-bargaining employees with at least five years of service.
The move marks the latest cost-cutting efforts for the U.S. auto industry as companies seek to cut costs amid economic concerns and billions of dollars in new investments in emerging technologies such as electric vehicles. It is something.both general motors and ford motor It has also cut its salaried workforce over the past year.
“As the U.S. auto industry continues to face challenging market conditions, Stellantis is taking the necessary structural steps to protect our business and company,” Stellantis said in an emailed statement. Ta. “As we prepare for the transition to electric vehicles, Stellantis today announced a voluntary initiative to provide non-representative employees who retire or wish to retire with a favorable benefits package to enable them to pursue other interests. We have announced that we are offering a severance package.”
A Stellantis spokeswoman declined to comment on the number of jobs the company wants to cut or the overall costs. He also declined to comment on whether involuntary layoffs are planned if not enough employees are willing to take the deal.
Stellantis North American Chief Operating Officer Mark Stewart informed employees about the program on Monday. Wall Street Journal.
The company said employees have until Dec. 8 to accept the offer.
This is Stellantis’ second salary buyout this year. In April, the company expanded its voluntary buyout to approximately 33,500 U.S. employees. This includes 31,000 hourly employees with at least one year of service and 2,500 non-union salaried employees with at least 15 years of service.
The acquisition comes weeks after the automaker reached a tentative agreement with the United Auto Workers union for a new labor contract covering 43,000 unionized workers.
The tentative agreement between Stellantis and the UAW, which still requires union member approval, includes a voluntary acquisition.
The UAW said its voluntary incentive programs for retirees include: $50,000 before tax In 2024 and 2026, there is no limit to the number of eligible production and skill union members.
A Stellantis spokesperson said the paid buyout offer is not directly related to expected increases in U.S. labor costs as a result of the agreement with the UAW.
The union’s preliminary agreement includes a 25% wage increase, including an 11% increase after ratification. Reinstatement of cost of living adjustments. Additional contributions to retirees. Billions of dollars in new investment. There are advantages such as:
Don’t miss the next story from CNBC PRO.