Stellantis Dangles $50,000 Check for Voluntary Terminations

Chris Teague
by Chris Teague

After a long period of hiring and widespread labor shortages, some companies are looking to cut back on staff to prepare for uncertain economic times ahead. Earlier this month, we learned that thousands of GM employees took the company’s offer for a buyout, which helped it avoid mass layoffs. Now it’s Stellantis’ turn, as the automaker is offering money to lure around 3,500 hourly workers out of their jobs.

Stellantis wants to cut costs to put more resources behind its electrification push, which includes 25 new models by 2030. Retirement-eligible workers hired before the 2007 union contract can get a $50,000 check for taking the offer, while others with more than a year of service will get smaller amounts.

The automaker had already stopped production at its Belvidere, Illinois plant and announced that the Jeep Cherokee would be discontinued shortly after. That move put the union on edge, but this ask at least comes with a check attached.

Stellantis will offer the deal for a little over a month, starting on May 6. Workers will begin leaving between the end of June and the end of the year. Interestingly, the openings created by people leaving for the deal will be filled by others on indefinite layoff, so the jobs aren’t going away completely. 

[Image: Jonathon Weiss via Shutterstock]

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Chris Teague
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 22 comments
  • 3SpeedAutomatic 3SpeedAutomatic on Apr 27, 2023

    Under the FIAT flag, the company squandered resources while ignoring Chrysler and Dodge. The FIAT brand was a favorite of Sergio Marchionne which wasted precious capital with zero payback. Jeep was leveraged to the hilt till the brand has a diminished reputation. Ram was the only cash cow. Now, Stellantis in a rush to an EV platform while pumping Ram for every dime available.

    There's a book titled "Riding the Roller Coaster" by Charles K Hyde describing the feast & famine history of Chrysler. Mr Hyde needs to write a sequel entitled "How to Squander Capital in the Auto Business".🚗🚗🚗

  • Lou_BC Lou_BC on Apr 27, 2023

    "Ram was the only cash cow."

    LOL... NO.

    Jeep Wrangler is a massive "cash cow" with 2022 sales around 180k.

    They sell around 120k Chargers and Challengers. That's an ancient platform. They are making money on those as well.

    Ram USA 2022 was around 450k

    • See 1 previous
    • 3SpeedAutomatic 3SpeedAutomatic on Apr 30, 2023

      Why do you think FIAT courted PSA with open arms. What money garnered from Chrysler & Dodge via ancient platforms was wasted on the Dart (PF) & 200 dead ends. Jeep was used to pay the rent, payroll, and suppliers while FIAT was a money pit.

      After a decade under Sergio Marchionne, not much to show for his efforts.

  • 28-Cars-Later 28-Cars-Later on Apr 27, 2023

    LX is/was a cash cow in decline.

  • 28-Cars-Later 28-Cars-Later on Apr 27, 2023

    Not sure how many workers are involved, but say up to $50m to shut down Belvidere with no fuss is a decent deal (assuming 1,000 pre 2007 workers eligible).