Stellantis Profit-Sharing Checks Plummet 73% Amid Financial Struggles

DETROIT, Mich. — Stellantis announced on Wednesday that its UAW-represented employees will receive profit-sharing checks of $3,780 this year, marking a dramatic 73% decrease from last year’s $13,860 payments. The automaker, which owns brands including Jeep, Ram, Chrysler, Dodge, and Fiat, cited financial challenges, including a net loss of $133 million for the second half of 2024, as the reason for the significant drop.

Approximately 38,800 workers are eligible for the profit-sharing checks, which are set to be distributed on March 7. The amount each worker receives varies based on compensated hours worked throughout the year, according to Stellantis. The profit-sharing formula is linked to the company’s financial performance in North America and the terms established in its 2023 contract with the United Auto Workers (UAW).

Stellantis reported an adjusted operating income margin in North America of 4.2% for the past year, a steep decline from 15.4% the previous year. This downturn is attributed to a notable decrease in vehicle sales and high inventory levels. “It’s a year of stark contrasts for the company, with results falling short of our potential,” said Stellantis Chairman John Elkann in a recent news release.

Comparatively, Stellantis’ Detroit rivals reported significantly higher profit-sharing payouts. General Motors (GM) announced record profit-sharing checks of up to $14,500 for 48,000 eligible workers, while Ford stated that its 57,000 eligible employees would receive approximately $10,208 in bonuses, slightly below last year’s figures. These statistics underline Stellantis’ ongoing financial struggles within the competitive automotive market.

In a noteworthy shift from previous practices, employees who left Stellantis after Dec. 31 but before the profit-sharing checks are issued will still be eligible for their payouts. Additionally, supplemental workers will also receive a “performance sharing” payout based on the profit-sharing formula, though their numbers have decreased since the agreement’s negotiation phase.

As Stellantis continues to grapple with its financial hurdles, the search for a new CEO remains ongoing following the resignation of Carlos Tavares late last year. Elkann expressed optimism about the company’s future, stating, “We are firmly focused on gaining market share and improving financial performance as 2025 progresses.” Changes in the automotive industry and consumer demand will be crucial to Stellantis’ recovery in the coming year.

This story is developing, and updates will be provided as new information becomes available. For more details, contact Eric D. Lawrence.