Stellantis to offer buyouts amid electric vehicle transition

Apr 26, 2023, 9:36 AM | Updated: 11:24 am

FILE - The Stellantis sign is seen outside the Chrysler Technology Center, Jan. 19, 2021, in Auburn...

FILE - The Stellantis sign is seen outside the Chrysler Technology Center, Jan. 19, 2021, in Auburn Hills, Mich. Stellantis on Wednesday, April 26, 2023, said it is offering buyouts to groups of white-collar and unionized employees in the U.S., as well as hourly workers in Canada. (AP Photo/Carlos Osorio, File)
Credit: ASSOCIATED PRESS

(AP Photo/Carlos Osorio, File)

DETROIT (AP) — Another automaker is trying to cut its workforce to trim expenses and stay competitive as the industry makes the long and costly transition to electric vehicles.

Stellantis on Wednesday said it’s offering buyouts to groups of white-collar and unionized employees in the U.S., as well as hourly workers in Canada.

The cuts are “in response to today’s increasingly competitive global market conditions and the necessary shift to electrification,” the company said in a prepared statement.

Stellantis said it’s looking to reduce its hourly workforce by about 3,500, but wouldn’t say how many salaried employees it’s targeting.

The company has about 56,000 workers in the U.S., and about 33,000 of them could get the offers. Of those, 31,000 are blue-collar workers and 2,500 salaried employees.

The company has another 8,000 union workers in Canada, but it would not say how many will get offers.

Stellantis, formed in the merger of Fiat Chrysler and France’s PSA Groupe, says in a statement that it’s reviewing its North American operations to trim costs, become more efficient and protect the competitiveness of its products.

The company says it’s offering packages to certain salaried workers who have 15 or more years of service. Packages also are being offered to unionized employees in the U.S. and Canada.

Information about the packages will go to employees the week of May 1.

The offers drew immediate criticism from Shawn Fain, the new president of the United Auto Workers union. “Stellantis’ push to cut thousands of jobs while raking in billions in profits is disgusting,” Fain said in a prepared statement. “This is a slap in the face to our members, their families, their communities, and the American people who saved this company 15 years ago.”

The former Chrysler company went through a government-funded bankruptcy in 2009 and was eventually merged with Italian automaker Fiat.

The offers follow General Motors, which have trimmed their workforces in the past year through buyout offers. About 5,000 white-collar workers took General Motors up on offers to leave the company this year. Ford cut about 3,000 contract and full-time salaried workers last summer, giving them severance packages.

The union’s testy statement about Stellantis comes ahead of what are expected to be contentious contract talks between Detroit’s three automakers, the United Auto Workers, and Unifor, the Canadian union representing auto workers.

Talks with both unions will open this summer. The UAW contracts expire in September.

Last week, Fain told reporters that he’s unhappy with all three companies over efforts to unionize new joint-venture factories that will make battery cells for future electric vehicles.

All three companies are investing billions to build at least 10 battery factories in North America to handle expected demand for EVs.

Fain close a factory in Belvidere, Illinois, is unacceptable. Stellantis placed the Belvidere plant on “idle” in February and laid off most of its roughly 1,350 workers.

Fain won a narrow election last month running on the platform that the union for too long has been cooperative with the automakers. He would not say if a strike against Stellantis is likely.

____

This story has been corrected to delete a line saying that Stellantis will make buyout offers to 8,000 union workers in Canada. The company has 8,000 union workers in the country but did not say how many will get offers.

United States News

FILE - Chris Licht attends the 16th annual CNN Heroes All-Star Tribute on Dec. 11, 2022, in New Yor...

Associated Press

CNN ousts CEO Chris Licht after a brief, tumultuous tenure

CNN ousted chief executive Chris Licht after a tumultuous year leading the struggling news network.

19 hours ago

FILE - Republican U.S. Rep. Chris Stewart looks on during his town hall meeting on March 31, 2017, ...

Associated Press

Utah to hold election for retiring congressman’s seat in November

SALT LAKE CITY (AP) — Utah Gov. Spencer Cox said on Wednesday that the election to replace resigning U.S. Rep. Chris Stewart will take place in the fall, expediting the timeline prescribed by state law to ensure the six-term Republican’s seat doesn’t remain vacant for more than a few months. Stewart informed Cox, also a […]

19 hours ago

The Connecticut State Capitol building is seen in Hartford, Conn., Monday, Oct. 1, 2012. Connecticu...

Associated Press

Connecticut to adjourn largely bipartisan session in contrast to rancor in other states

HARTFORD, Conn. (AP) — Connecticut’s Democratic-controlled General Assembly passed protections for abortion providers and gave more power to libraries facing book challenges — and they did it with Republican support. All but 13 Republicans voted for the major gun control bill that’s already being challenged in court. Bucking the partisan rancor seen in other legislatures […]

19 hours ago

Associated Press

6 arrested in alleged scheme to fraudulently collect millions in COVID aid meant for renters

SEATTLE (AP) — Six people from Washington, Arizona and Texas have been arrested and accused of fraudulently obtaining millions of dollars of COVID-19 aid from an assistance program meant for renters, federal prosecutors said. U.S. Attorney Nick Brown, Western District of Washington, on Wednesday announced the arrests and charges of wire fraud and money laundering. […]

19 hours ago

Associated Press

2 Connecticut officers fired over treatment of man paralyzed in police van after 2022 arrest

The City of New Haven, Connecticut, fired two police officers Wednesday for what authorities called their reckless actions and lack of compassion toward Richard “Randy” Cox, who was injured and became paralyzed in the back of a police van after his arrest last year. City police commissioners voted to dismiss Jocelyn Lavandier and Luis Rivera […]

19 hours ago

President Joe Biden speaks during a cabinet meeting at the White House, Wednesday, June 7, 2023, in...

Associated Press

Biden vetoes bill to cancel student debt relief

WASHINGTON (AP) — President Joe Biden on Wednesday vetoed legislation that would have canceled his plan to forgive student debt. The measure had been pushed by Republicans, but it garnered a handful of Democratic votes in the Senate as well. “It is a shame for working families across the country that lawmakers continue to pursue […]

19 hours ago

Sponsored Articles

...

Desert Institute for Spine Care

Spinal fusion surgery has come a long way, despite misconceptions

As Dr. Justin Field of the Desert Institute for Spine Care explained, “we've come a long way over the last couple of decades.”

...

OCD & Anxiety Treatment Center

How to identify the symptoms of 3 common anxiety disorders

Living with an anxiety disorder can be debilitating and cause significant stress for those who suffer from the condition.

(Photo: OCD & Anxiety Treatment Center)...

OCD & Anxiety Treatment Center

Here’s what you need to know about OCD and where to find help

It's fair to say that most people know what obsessive-compulsive spectrum disorders generally are, but there's a lot more information than meets the eye about a mental health diagnosis that affects about one in every 100 adults in the United States.

Stellantis to offer buyouts amid electric vehicle transition