Stellantis Offers Buyouts to UAW Employees Amid Cost-Cutting Efforts

DETROIT, Mich. — Stellantis is offering voluntary buyouts to hourly United Auto Workers (UAW) members at over 20 manufacturing and Mopar locations in the Detroit and Toledo areas, as part of an effort to streamline operations.

The buyout program, detailed in a company letter obtained by the Detroit Free Press, is available to employees with at least one year of service. Payments range from $50,000 for workers with 1-15 years of seniority to $72,000 for employees with 25 years or more. Participants will also receive six months of medical benefits, although dental coverage is excluded.

This buyout offer, which runs from March 24 to May 8, requires that Stellantis management determine which employees will be eligible. Some workers may be able to leave as soon as their application is approved, following a seven-day revocation period, while others may need to remain until September 30.

Stellantis, which owns brands such as Jeep, Ram, Chrysler, Dodge, and Fiat, has faced several challenges over the past year, including declining vehicle sales and high inventory levels. The automaker also dealt with significant criticism for job cuts in 2023 and is currently searching for a new CEO following the exit of Carlos Tavares.

As the company navigates a competitive automotive market, it has recently shifted its strategy to include aggressive marketing, adjusted vehicle pricing, and reduced inventory levels. Despite these positive changes, Stellantis remains cautious due to the looming threat of tariffs and uncertainty in the marketplace.

According to industry analysts, the buyout offer could attract interest among employees still navigating uncertainty from previous layoffs. “Voluntary buyouts can be a double-edged sword,” said automotive industry expert Jennifer Smith. “They provide immediate financial relief for some, but they also signify a larger struggle within the organization as it attempts to adapt to current market conditions.”

UAW representatives, along with Stellantis spokespeople, have been asked for comment but had not responded as of Thursday.

This is a developing story. Further updates will be provided as more information becomes available.