In response to President Joe Biden’s push for electric vehicles (EVs) through tax credits, Stellantis, the parent company of popular brands such as Jeep, Chrysler, Ram, and Dodge, is offering buyouts to thousands of its American white-collar employees.
The company plans to transition to EVs and has announced a buyout plan that would offer a voluntary separation package to 6,400 of its 12,700 non-union American white-collar employees. This move aims to reduce costs and support Biden’s green energy agenda, despite the fact that American consumers are not currently purchasing many EVs.
Stellantis spokeswoman Jodi Tinson stated, “As the U.S. automotive industry continues to face challenging market conditions, Stellantis is taking the necessary structural actions to protect our operations and the company.” She further explained that the voluntary separation package is being offered to assist employees who wish to separate or retire from the company and pursue other interests.
Stellantis remains committed to their Dare Forward 2030 strategy, which includes launching eight new electric vehicles by 2024. Employees interested in the buyout will have until the second week of December to make their decision.
This buyout offer follows Stellantis’ recent agreement with the United Auto Workers (UAW) to increase wages, reintroduce cost-of-living allowances, and grant employees the right to strike if the automaker shuts down a plant.
In exchange, Stellantis, along with General Motors (GM) and Ford, has committed to investing billions of dollars in support of Biden’s EV transition. One of Stellantis’ plans is to build an EV battery plant in Belvidere, Illinois, creating approximately 1,300 jobs.
Additionally, the company aims to produce all-electric versions of several existing models at its plants in Toledo, Ohio; Warren, Michigan; Sterling Heights, Michigan; and Detroit, Michigan.
However, American auto workers have expressed concern over “poverty wages” and the potential loss of their jobs due to Biden’s EV goals, which are now becoming a reality for automakers. These workers fear that their jobs may eventually be outsourced to China, as the country controls critical components of the EV battery supply chain.
China holds significant dominance in the production of key materials like lithium, manganese, cobalt, graphite, and nickel, which are essential for manufacturing lithium-ion batteries used in EVs.