Chrysler maker Stellantis NV is offering employees at its Ontario assembly plants a retirement incentive to minimize the impact of workforce reductions as it seeks “efficiencies” in its manufacturing operations.
Stellantis didn’t specify how many workers will be affected. The offer is available to eligible workers at Windsor Assembly Plant, home of the Chrysler minivans, and Brampton Assembly Plant, which builds the Dodge muscle cars and Chrysler 300 sedan. Eligible employees on Monday will receive package details, which the company declined to divulge.
“As we transition to a sustainable, mobility tech company, we continue to review our operations for efficiencies,” the company said in a statement. “In order to minimize the impact on our workforce, a retirement incentive program will be offered to eligible employees at the Windsor and Brampton Assembly Plants.”
The plans come as Stellantis has begun layoffs at other North American plants. CEO Carlos Tavares has said the company is seeking ways to absorb the 40% to 50% increase in costs of electric vehicles while pursuing a double-digit profit margin.
Workers will have two weeks to respond to the retirement offer. The workforce reduction will take effect over the next several months.
“The Company,” the statement reads, “will make every effort to place laid off hourly employees in open full-time positions as they become available based on seniority.”
The workforce reductions don’t affect Stellantis’ recent $2.8 billion commitment to invest in the two assembly plants for the production of electrified vehicles. The company seeks to have all-electric vehicle sales represent half of North American sales by 2030 despite currently not offering a single fully battery-electric vehicle on the continent.
“Stellantis is firmly committed to the future of its Canadian operations,” the statement added.
The announcement follows announced layoffs at other Stellantis plants. Windsor will lose its second shift at the end of the year, but investment in the plant will return the plant to three shifts following the retooling that begins next year. The automaker has decreased its workforce at its Jeep Cherokee plant in Belvidere, Illinois, and at its stamping plants in Sterling Heights and Warren. More than 330 salaried employees late last year also opted for an early retirement.