- Chrysler-parent Stellantis N.V. STLA looks to slash close to 3,500 hourly U.S. jobs and extend voluntary exit packages.
- Stellantis is looking to reduce its hourly workforce by offering incentive packages, including $50,000 payments for workers hired before 2007, Reuters cites a United Auto Workers union letter.
- Sources suggest that the figure might be lower than cited in the UAW letter.
- In late February, Stellantis suspended operations at an Illinois assembly plant indefinitely, citing rising electric vehicle production costs.
- Stellantis's suspension impacted about 1,350 workers at the Belvidere, Illinois, plant that built the Jeep Cherokee SUV and resulted in indefinite layoffs. Stellantis also warned against not resuming operations.
- The UAW letter said workers on indefinite layoff would fill the openings created by workers leaving. Stellantis said in February that about 40,000 U.S. hourly workers were eligible for profit sharing.
- Last week, UAW President Shawn Fain chastised Stellantis for suspending operations at the Illinois plant, amounting to "a flat-out violation" of the union's contract with the UAW.
- The UAW looks to discuss with the Detroit Three before labor contracts expire in mid-September.
- General Motors Co GM said about 5,000 salaried workers accepted buyouts to leave the automaker in April.
- Ford Motor Co F recently announced significant job cuts in Spain, Germany, and other parts of Europe and in August, said it would cut a total of 3,000 salaried and contract jobs, mainly in North America and India.
- Price Action: STLA shares closed lower by 2.07% at $17.92 on the last check Tuesday.
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