Stellantis Offers Buyouts to Half of Its Nonunion US Staff Amid Challenging Market Conditions

Move Comes as Company Prepares for Transition to Electric Vehicles

Stellantis is offering buyouts to 6,400 of its salaried US staff, which is half of its nonunion staff, in a cost-cutting move.
The buyouts are based on years of service, with those with less than 10 years of service time getting three months of their normal pay, and those with 20 or more years at the company getting a full year’s pay if they leave.
Stellantis has not confirmed whether this move is driven by the projected increase in labor costs associated with its recently negotiated tentative labor deal with the United Auto Workers union or the cost of a recent strike that lasted over seven weeks.
The company is preparing for the transition to electric vehicles, with the buyouts aimed at assisting those non-represented employees who wish to separate or retire from the company.
The auto industry is facing challenging market conditions, with high interest rates slowing car sales and the transition to electric vehicles being more expensive than internal combustion engine counterparts.