Stellantis is offering some employees buyouts at facilities in Detroit and Toledo, Ohio, and Illinois, company spokesperson Ann Marie Fortunate confirmed in an email to Automotive Dive.
The automaker is offering "voluntary terminations and retirement incentive packages," per an official statement. The offers were sent to a few groups of employees: union members at manufacturing and Mopar facilities in Detroit and Toledo; and production, skilled and salaried bargaining unit employees at facilities in Illinois. Eligible employees must decide on offers by May 8.
According to the Detroit News, which was first to report on the voluntary exit packages at the automaker, the offers extend to workers with at least a year of experience. The publication also reported the offers were extended to workers at over 20 plants, parts distribution centers and other facilities.
Stellantis did not confirm the number of workers, locations, or pay details of the offers with Automotive Dive.
“Stellantis continues to review its operations to improve efficiency and protect its competitiveness in a very dynamic market,” the company said in its statement.
The moves are part of ongoing cost-cutting efforts by the automaker after a challenging 2024 that included a significant decline in profits and shrinking market share in North America that led to executive shakeups and the resignation of former CEO Carlos Traveres in December.
Stellantis reported a 48% decline in revenue in North America in the first half of 2024. The company’s net profits also declined by 70% for the year. The automaker also reported a negative 6 billion euro free cash flow largely due to declines in income and increase in capital spending to launch new models.
The challenging year led to other executive shakeups at Stellantis, which included naming new leaders for its Jeep, Dodge and Ram brands in the U.S.
Stellantis said it will launch 10 new products this year and will prioritize critical launches in key markets, especially in the U.S. In its earnings report last month, the automaker said it will work closely with its dealers in the U.S. and Europe to accelerate its return to growth.
However, the Big Three automakers are facing tariffs of up to 25% that could impact their supply chains and profitability in 2025.
Earlier this month, The Trump Administration gave a one-month exemption on proposed tariffs for cars entering the U.S. from Canada and Mexico through the United States-Mexico-Canada Agreement. The tariff pause, which is expected to end on April 2, followed conversations between President Donald Trump and representatives at Stellantis, General Motors and Ford Motor Co.
