Increase Stellantis Workers Reap $2B Bonanza from 2023’s Surge in Sales

Employees Receive $6.4 Billion via Pay for Performance Approach in Three-Year Span

The union of Fiat Chrysler Automobiles and PSA Peugeot Citroën was officially completed in the beginning of 2021, resulting in the creation of Stellantis. However, prior to the completion of the merger, the automotive conglomerate had already extended its good fortune to its workforce through the implementation of the “pay for performance” program. To date, Stellantis has disbursed €6 billion (equivalent to approximately $6.4B based on current exchange rates), with plans to continue this initiative in 2023.

Stellantis, following a successful year of sales, has announced that its employees will receive a generous payout in 2024. The total amount being distributed is a substantial €1.9B ($2B). While the exact number of beneficiaries has not been disclosed by the company, it has confirmed that approximately 95 percent of its employees were part of the profit-sharing scheme under the “pay for performance” program in the previous year.

However, the situation is not entirely positive. As Stellantis shifts its focus towards electric vehicles, it will also be reducing its workforce by a significant number. In November of 2023, the company disclosed its plans to offer voluntary buyouts to approximately 6,400 salaried employees in the United States. This came after a previous announcement in April where they extended voluntary exit packages to 33,500 employees based in the US, which included 31,000 hourly workers and 2,500 salaried workers.

The European market is facing a comparable scenario, as the automotive industry shifts towards electric vehicles, job losses remain a major issue. Stellantis, which has been in existence for three years following its merger, has already downsized nearly 7,000 positions exclusively in Italy. This decision was made despite the company’s promise to sustain all 14 of its brands, including Lancia.

This week, the unveiling of the new Ypsilon symbolizes the revival of a struggling brand and serves as a noteworthy achievement for Lancia as their initial foray into the electric vehicle market. This also marks one of 18 electric vehicles that will be produced by Stellantis this year. In an effort to increase their electric options, the company has set a goal of having 48 exclusively electric models in their lineup by the conclusion of 2024.

Source: Stellantis

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