Stellantis offers UAW workers in Detroit, Toledo buyouts. Here's how much they're worth

Stellantis NV has offered hourly employees across multiple Detroit and Toledo-area facilities buyouts worth $50,000 or more, the latest move by the automaker as it seeks to reduce costs and streamline its workforce in the United States.

The voluntary termination of employment program, or VTEP, as well as a similar retirement incentive program, applies to certain United Auto Workers-represented workers at more than 20 plants, parts distribution centers and other facilities, letters shared with employees this week show. Beyond Detroit and Toledo, the offer also was extended to some workers in Illinois.

Only workers with at least a year of experience qualify. The payout can range from $50,000 for workers with up to 15 years, to $72,000 for workers with 25 years or more. It also includes six months of medical benefits, not including dental.

"Stellantis continues to review its operations to improve efficiency and protect its competitiveness in a very dynamic market," the automaker said in a statement from spokesperson Ann Marie Fortunate.

The blue-collar worker buyout offer comes after a difficult 2024 for Stellantis that saw its vehicle sales and profits fall sharply in North America and its CEO depart. The company had already laid off thousands of workers across the region last year as it looked to cut costs. Some of those workers currently on layoff are likely to take advantage of the lump-sum payment.

Stellantis is aiming to bounce back in 2025 with new models, adjusted pricing and more aggressive marketing. It also earlier this year announced it was making investments in several key plants, and reopening its Belvidere Assembly Plant in Illinois, after previously putting that plan on pause.

But the Jeep and Ram maker's momentum toward a recovery could be slowed by the Trump administration's tariff policies, which are set to impact the company's operations in Canada, Mexico and elsewhere.

UAW hourly employees who work at several facilities — such as the Detroit Assembly Complex, Sterling Heights Assembly Plant, Toledo Assembly Complex, Trenton Engine Plant, Warren Stamping Plant, Warren Truck Assembly Plant, parts distribution centers, the Chelsea Proving Grounds and at the headquarters in Auburn Hills — were offered the buyout.

Stellantis management will decide who is approved "based on business needs," according to the letter. The offer period for the buyout runs from Monday to May 8. Some employees who opt in could depart within a week of approval; others may be required to stay on as late as Sept. 30.

The company also offered an incentive program encouraging some workers in the Detroit and Toledo areas to retire, another letter shows. Those workers must meet certain age and experience provisions and can receive a lump-sum payment of $50,000.

"The truth is, we are still dealing with the mess left behind at Stellantis by (former CEO) Carlos Tavares," Kevin Gotinsky, who oversees the UAW's Stellantis department, said in a statement. "His gross mismanagement created a crisis, and we’re still trying to recover. Thousands of our members were laid off, and it’s been a long road just getting to this point.

Gotinsky added: "We negotiated a package with the company’s 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. With the opening of the VTEP, we made sure the company was responsive to our members' needs. Most of this year has been spent fighting to get here — and we’re not done yet."

lramseth@detroitnews.com

@lramseth