Stellantis initiates new round of buyouts for some US factory workers

By Nora Eckert and Kalea Hall

DETROIT (Reuters) -Jeep-maker Stellantis is offering a new round of buyouts for some of its U.S. factory workers as the automaker looks to cut costs following a difficult 2024.

The automaker confirmed on Friday that it is offering voluntary buyouts to some workers at facilities in Detroit, Ohio and Illinois.

"Stellantis continues to review its operations to improve efficiency and protect its competitiveness in a very dynamic market," the company said in a statement. 

The United Auto Workers union, which represents most Stellantis factory workers, said in a statement it had negotiated a package with Stellantis' new leadership team that gives workers as many options as possible.

"For those ready to retire, there's a clear path. For others, voluntary termination is now on the table," the UAW said.

The Detroit Free Press earlier reported the buyouts. 

The relationship between the union and automaker soured under former CEO Carlos Tavares, who abruptly left Stellantis in December after U.S. vehicle sales dropped.

UAW President Shawn Fain claimed the automaker failed to keep the commitments it made in its 2023 bargaining deal, and laid the groundwork for a nationwide walkout. The company later sued the UAW in federal court. 

Stellantis Chairman John Elkann is now leading the search for Tavares' successor, who will be announced in the first half of this year.   

The transatlantic automaker's cost-cutting blitz began before Tavares' exit. Stellantis laid off 400 U.S. salaried workers in March 2024 after twice offering buyouts to groups of thousands of U.S. workers in 2023.

Employees have until May 8 to decide whether to accept this latest offer, the company said. 

(Reporting by Nora Eckert and Kalea Hall in Detroit; Editing by Kirsten Donovan and Nia Williams)