Stellantis has initiated a voluntary buyout programme for select US factory workers, reported Detroit Free Press.
The buyout offering at facilities in Detroit, Ohio, and Illinois comes as the automaker aims to reduce expenses after facing challenges in 2024.
Go deeper with GlobalData
The offer, termed the Voluntary Termination of Employment Program (VTEP), is available to hourly employees at over 20 plants and parts distribution centres across Detroit and Toledo, as well as some workers in Illinois.
To be eligible, workers must have at least one year of experience.
The buyout amounts range from $50,000 for employees with up to 15 years of service to $72,000 for those with over 25 years, including six months of medical benefits.
The automaker was cited by the news agency as saying in a statement from spokesperson Ann Marie Fortunate: “Stellantis continues to review its operations to improve efficiency and protect its competitiveness in a very dynamic market.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe buyout programme follows a year in which Stellantis saw a sharp decline in vehicle sales and profits in North America, leading to the departure of its CEO and layoffs of thousands of workers.
The United Auto Workers (UAW), representing most Stellantis factory workers, has negotiated a package with the new leadership team to provide workers with more possible options, reported Reuters.
“For those ready to retire, there’s a clear path. For others, voluntary termination is now on the table,” the UAW added.
Stellantis chairman John Elkann is currently leading the search for a new CEO, expected to be announced in the first half of this year.
