Stellantis to Offer Voluntary Buyouts to Thousands of Salaried U.S. Employees

by Chris Teague

Published: July 31st, 2024

stellantis to offer voluntary buyouts to thousands of salaried u s employees

Auto industry executives are grappling with rising costs and a challenging economic environment, leading many to employ aggressive cost-cutting measures. At Stellantis, the latest effort to right the ship will involve a voluntary separation program for its salaried U.S. workforce.

Stellantis’ plan does not have a minimum service requirement, and everyone from the VP level down will be eligible to participate. The process will begin soon and could involve thousands of the automaker’s U.S.-based employees. A spokesperson told Automotive News that eligible employees will receive an email in mid-August with details on their buyout amounts.

Though it’s hoping to achieve its headcount reduction goals with voluntary separations, the automaker said it would not be shy to employ involuntary separations (layoffs) if there aren’t enough employees willing to step away. A company rep said in an email, “With our commitment to executing our Dare Forward 2030 strategy, we must continue to adapt by streamlining operations and finding efficiencies that will enhance our competitiveness to ensure our future sustainability and growth.”

Stellantis, which houses the Jeep, Dodge, Chrysler, Maserati, Alfa Romeo, Fiat, Ram, and other brands, had a significant sales drop in the second quarter of 2024. It sold 344,993 vehicles, a 21 percent tumble from the same period in 2023. Even the company’s historically solid-selling models fell, including the Jeep Wrangler with a 17 percent drop and the Grand Cherokee with a 26 percent decline.

[Images: Stellantis]

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Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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6 of 46 comments

M B on Aug 01, 2024
There has been little apparent investment in the sedan category, as in "300" for the past several years. Stagnant. This is the USA where "new" is better than "old", as to new vehicle sales. No investment as they were not readying a product to replace it. This always happens when an OEM is looking for reasons to delete products which ae considered "unprofitable". Happened with the 1990s Camaro, T-bird, Cougar, and Lincoln Mark coupe. GM orchestrated it. Ford desired to keep their car's platforms alive so the Cougar could get its 50th Anniv model. Different perspectives. When Camaro enthusiasts revolted, GM suddenly listened and brought us the OZ Holden platform, then American-ized it for this market. In the Euro and Oriental markets, "continued" vehicles are not seen as "bad", improving each year. In the USA, not that way. As they are apparently seeking to Euro-ize the USA buyer's tastes, which is NOT how "customer service" works. Dodge Hornet? Re-badged Euro vehicle with Dodge items. Too small, too expensive. RAM pickups are good, as are the RAM vans for businesses, with the only real competition being Ford and Mercedes. Another re-badged Euro vehicle? If they have some issues in the assy plants, or with suppliers, those things need to be remedied, obviously. Realizing that hiring in less-espensive new-hires can be worse than keeping their older, more experienced workers, who know what they are doing. "Warm body hires" leads to mediocrity. All of the Stellantis NA problems were orchestrated by people "who don't live here", by observation. As to their "cuts", GM PROVED that you can't cost-cut to prosperity. Where was Carlos back then? Look for future "fire sales" of Stellantis NA properties? IF, per chance, they delete Chrysler, would they have enough production volume for that plant to keep it running? As it takes a certain level of production to keep a plant profitable. ONLY thing is that it might cost them MORE to liquidate USA holdings. Will USA dealers take on a Euro brand with no USA history, to replace Chrysler? Dealer buy-outs can get expensive, big time, but they might need to go back to the last three years of sales volume, rather than just one! From what some Internet Voices have said, with Stellantis NA moving some Chry Corp model names into "Dodge's umbrella", there seems to be an internallhy-orchestrated "getting ready for" Chrysler's demise. KEY point is that as good as the Stellantis Board might be, they obviously do NOT understand the USA car market as they do the "other world" car markets. The BIG MESS that is now Stellantis NA is of THEIR making, yet they will not admit that! Nor will they admit that when Sergio M. was alive, Chrysler was doing very well, as he let "Chrysler be Chrysler". Look what "those that came behind him" have done! The "blood" is on THEIR HANDS!

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- 28-Cars-Later on Aug 01, 2024
  Two things .... 1. Ford had just invested in an entire refresh of the Mark VIII when it was discontinued (some in the period found it puzzling) ..... 2. Sergio didn't invest in future platforms for LX and WK2 because his goal was to merge FCA and preferred the Agnellis to pocket the R&D difference. The products which did receive investment (namely Alfa) did not succeed in the USDM. Ultimately FCA was unintentionally set up to fail and I suspect PSA understood this and just pretends otherwise because 'Muricans were never going to be happy with all of the planned cuts/layoffs.
  
  1
- ToolGuy on Aug 01, 2024
  Healey Paragraph Breaks!
  
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28-Cars-Later on Aug 01, 2024
Methinks it may be time for a Cialis, err Stellantis death watch. The data I just read on ZH is pretty dire and Tavares had to make a point to say "the most customer focused will survive" (which to me means he knows they're toast): https://www.zerohedge.com/markets/descent-starting-stellantis-ceo-has-his-back-against-wall-trying-sell-jeeps

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- VoGhost on Aug 02, 2024
  Serious question: why do you follow these right wing nut job sites, rather than read real news?
  
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- 28-Cars-Later on Aug 02, 2024
  "We’ll know our disinformation program is complete when everything the American public believes is false" - William Casey, CIA Director, to President Reagan, 1981 ..... Based on what you talk about, I'd say its complete.
  
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