[QUOTE]Originally posted by 6guns:
https://www.fidelity.com/news/...ED_KBN3281KN-OUSBS_1

Stellantis offering buyouts to about half its US salaried employees

(Reuters) -Chrysler-parent Stellantis ( STLA ) said Monday it is offering 6,400 U.S. salaried employees voluntary buyouts as it works to cut costs amid the transition to electric vehicles and agreeing to a new United Auto Workers contract.

The buyouts would be about half the company's salaried U.S. employees not represented by a union, which is currently 12,700. Another 2,500 Stellantis U.S. salaried workers are unionized and are not being offered the current buyout.

Salaried employees must have at least five years of experience to be offered a voluntary departure package. Employees agreeing to take the incentive would depart before the end of December.

Stellantis ( STLA ) said it was taking "necessary structural actions to protect our operations and the company" and cited preparations "for the transition to electric vehicles."

In April, Stellantis ( STLA ) said it was offering voluntary exit packages to 33,500 U.S. employees. That offer covered 31,000 U.S. hourly workers and about 2,500 salaried workers. It is also offered some employees in Canada voluntary buyouts.

Stellantis ( STLA ) Chief Operating Officer Mark Stewart told employees in April a review of its operations "has made it clear that we must become more efficient."

In October 2022, Stellantis ( STLA ) offered voluntary buyouts to its U.S. salaried employees who were aged 55 or older and had worked for the automaker at least 10 years.

Under the UAW contract, the company agreed to offer $50,000 buyouts for veteran production and skilled trade members. It will offer buyouts in 2024 and 2026.

Stellantis ( STLA ) said on Oct. 31 it would seek to offset a significant financial hit from strikes in North America that led to big pay increases and was looking at potential cost cuts.

Stellantis CFO Natalie Knight said the six-week strikes were unexpectedly long and would cost the group in the full-year 2023 less than 750 million euros ($800 million) in terms of profitability and around 3 billion euros in terms of revenue.

Stellantis ( STLA ) did not provide estimates on extra labor costs it will have to bear in the future, following new agreements with unions in North America.[/QUOTE


It's been almost a year, now they want to go on strike again. You would think UAW would cut them some slack, why would they want to shut down Stellantis? I wonder what they have to gain.

https://www.reuters.com/busine...-walkout-2024-09-18/

DETROIT, Sept 18 (Reuters) - The United Auto Workers union is eying multiple U.S. strikes against French-Italian carmaker Stellantis (STLAM.MI), opens new tab about a year after a national walkout cost the Detroit Three automakers billions of dollars and idled 50,000 workers.
Accusing Stellantis of breaking its contract promises, UAW President Shawn Fain on Tuesday night warned that several union local chapters were laying the groundwork for strikes that could collectively shut down the automaker.

The latest UAW threats follow last year's six-week strike that cost Stellantis about 750 million euros ($834.08 million) in profit. The union also hit General Motors (GM.N), opens new tab and Ford (F.N), opens new tab during the historic 2023 walkout, and drew U.S. President Joe Biden to the picket line to show his support for the striking workers.
Stellantis' North American operations have been struggling, and the strike threat looms as the race for the White House between Democrat Kamala Harris and Republican Donald Trump heats up. Harris, who is currently the U.S. vice president, has been endorsed by the UAW.
Union strikes outside the four-year contract negotiations are unusual, and a large walkout at Stellantis just one year after its labor deal was penned, in an election year, would be unprecedented.
"The union has picked the perfect time to target Stellantis, because the North American group is likely at its weakest point," said Sam Fiorani, vice president at research firm AutoForecast Solutions.
Fain said on Tuesday that 28 locals, covering tens of thousands of workers, had filed grievances against Jeep parent Stellantis and that 18 were at or near the point where they could call for strike authorization votes - with at least one expected in the next few days. Fain, who rose through the union's ranks after working as an electrician for Chrysler, brought a more combative approach and a fresh leadership team to the union after his election in 2023.

Stellantis customers are it's dealers. They are full of vehicles they can't sell and the Stellantis is offering no help (incentives). Usually, they would cut production. A Strike will help them

quote:

Originally posted by oldbill123:
Stellantis customers are it's dealers. They are full of vehicles they can't sell and the Stellantis is offering no help (incentives). Usually, they would cut production. A Strike will help them

I didn't think of it from that angle, I guess stopping production is not so bad then. I was considering that if they make nothing from production that it would close them down completely, they are already running lean on cash.

Stellantis is hurting and the Union sees a wounded company, so it's targeting them as the weakest automaker as ripe for making a quick agreement.

Sharks will be sharks...

quote:

Originally posted by oldbill123:
Stellantis customers are it's dealers. They are full of vehicles they can't sell and the Stellantis is offering no help (incentives). Usually, they would cut production. A Strike will help them

There is a Jeep dealer near me thar has Jeeps lined up everywhere they apparently can't sell. A marked contrast to most other dealers who still have thin inventory.

quote:

Originally posted by PASig:

quote:

Originally posted by oldbill123:
Stellantis customers are it's dealers. They are full of vehicles they can't sell and the Stellantis is offering no help (incentives). Usually, they would cut production. A Strike will help them

There is a Jeep dealer near me thar has Jeeps lined up everywhere they apparently can't sell. A marked contrast to most other dealers who still have thin inventory.

About every 2 months, Caredge publishes the Top 10 slowest selling vehicles and Top 10 fastest selling vehicles.. They just published last week.

For Stellantis:

Right now, jeep has 2 models, Renegade and Grand Wagoneer L, on the slowest selling list that are selling at the pace of 4 per day nationwide.

The Dodge Hornet on the slowest selling list.

At current sales rate, the 3 aforementioned models will take 11 months to clear the dealer lots even if they don't make another vehicle.

Earlier this year, Stellantis had 5 to 7 models on the slowest selling list so this is sadly an improvement. No Ram models was a surprise for me.

For EVs:

Hyundai Kona Electric is selling 1.6 cars per day nationally

Audi's RS e-tron GT is selling 1.4 cars per day nationally

I brought up the EV aspect, because Stellantis' strategy is to move away from the ICE and in the meantime subsidize the EV business with the ICE business. Note that caredge's fastest selling list is 100% ICE models.

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Ego is the anesthesia that deadens the pain of stupidity

DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer.

All 10 of the fastest selling are Japanese with 9 of them being Lexus/Toyota and one Honda, the civic. I am surprised not a single US company made the list.

quote:

Originally posted by Valpo Fz:
All 10 of the fastest selling are Japanese with 9 of them being Lexus/Toyota and one Honda, the civic. I am surprised not a single US company made the list.

True, but if you look at other automotive data the 10 fastest selling list has:

lower total cost of ownership vs peers due to dependability

didn't raise their prices as much the past 5 years (e.g. Toyota 33%).

the net result is the delta in initial cost of a Toyota vs Hyundai has drastically narrowed and then owners typically spend less money on the Toyota over its life.

On the other hand, the 10 slowest list is full of vehicles with high total cost of ownership due to lack of reliability and they raised their prices much more in the past 5 years. The slow list double whammied themselves with massive price increases (e.g. Hyundai 48%, Stellantis 50%) and low reliability.

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Ego is the anesthesia that deadens the pain of stupidity

DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer.