Reuters - Stellantis offering new round of voluntary buyouts to US salaried workers

[wemay]

I'm hearing it's, accept the buyout or else...

https://www.reuters.com/business/au...ntary-buyouts-us-salaried-workers-2024-07-30/

 

[2009Caraman]

The clock is ticking…like a hemi.

 

[JeffKeryk]

It seems many of the major car companies, and more of the smaller car companies, are struggling...
Inflation, labor costs and shortages, and supply chain problems.

 

[JustN89]

It seems many of the major car companies, and more of the smaller car companies, are struggling...
Inflation, labor costs and shortages, and supply chain problems.

Trying to keep this economically-related and not political, but some powerful people are celebrating the slowdown of inflation. We're back to roughly the 2.5% target rate. However, what gets glossed over by those same people is the fact that prices are still 30% higher (rough aggregate- largely depends on the product/market) than they were 3-4 years ago. It was only a matter of time before inflation outpaced buying power, for both individuals and businesses alike.

Per the Bureau of Labor Statistics, $100 in 2009 equated to $121.31 in 2019. Over a 10 year span, cumulative inflation was 21.31%. That same $100 from 2019 to June of 2024 equates to $124.82. Inflation over the past 5 years has outpaced inflation over the prior 10. I don't know when, how, or what it will look like, but I don't see how this is sustainable. At some point, logic would dictate there will need to be a contraction, not just a slowdown of inflation.

 

[OVERKILL]

I'm hearing it's, accept the buyout or else...

https://www.reuters.com/business/au...ntary-buyouts-us-salaried-workers-2024-07-30/

Won't be the only one. Telus is apparently closing all of its Ontario offices. Workers are being told to either relocate to Montreal or face termination.

 

[JeffKeryk]

Trying to keep this economically-related and not political, but some powerful people are celebrating the slowdown of inflation. We're back to roughly the 2.5% target rate. However, what gets glossed over by those same people is the fact that prices are still 30% higher (rough aggregate- largely depends on the product/market) than they were 3-4 years ago. It was only a matter of time before inflation outpaced buying power, for both individuals and businesses alike.

Per the Bureau of Labor Statistics, $100 in 2009 equated to $121.31 in 2019. Over a 10 year span, cumulative inflation was 21.31%. That same $100 from 2019 to June of 2024 equates to $124.82. Inflation over the past 5 years has outpaced inflation over the prior 10. I don't know when, how, or what it will look like, but I don't see how this is sustainable. At some point, logic would dictate there will need to be a contraction, not just a slowdown of inflation.

Sure; inflation is an economic term. Inflation almost always increases, the goal is to cool the economy to slow the rate of inflation growth. So far the economy is experiencing a soft landing, which is remarkable. Economists were screaming recession a short time ago; that is highly unlikely at this point. A key problem is the lack of tools to control inflation. The Fed has the prime, but that is a poor tool at best.

If the rate of inflation and the economy continue to cool, interest rates will come down and lower auto costs for those who buy using credit, which is most people.

It is certainly an interesting time for the point of Economics. The US economy has proved to be bulletproof; it is the envy of the world.

 

[Exhaustgases]

Trying to keep this economically-related and not political, but some powerful people are celebrating the slowdown of inflation. We're back to roughly the 2.5% target rate. However, what gets glossed over by those same people is the fact that prices are still 30% higher (rough aggregate- largely depends on the product/market) than they were 3-4 years ago. It was only a matter of time before inflation outpaced buying power, for both individuals and businesses alike.

Per the Bureau of Labor Statistics, $100 in 2009 equated to $121.31 in 2019. Over a 10 year span, cumulative inflation was 21.31%. That same $100 from 2019 to June of 2024 equates to $124.82. Inflation over the past 5 years has outpaced inflation over the prior 10. I don't know when, how, or what it will look like, but I don't see how this is sustainable. At some point, logic would dictate there will need to be a contraction, not just a slowdown of inflation.

Not to worry, we are all supposed to own nothing and be happy.

 

[joekingcorvette]

When things get tough, the economy seems to keep rolling along and I guess time will tell. I feel sorry for anyone who loses their job due to cutbacks because it can be difficult in many areas to obtain the same pay and benefits especially if it's related to a factory closure or cutback.

 

[21_6.7f450]

Dealerships are busting at the seams with vehicles here. Produce anymore, where do you park them? I'd think is smart to cut back production. Nobody would cry for me if I lost my job. Life keeps going on. Nobody needs $82 an hour to install seats. That's a $18 an hour job. If you can't support your family on that, move up or move out.

 

[fdcg27]

I truly hate to see people made redundant, since it could just as easily be you or I.
The industry has always functioned on a boom/bust cycle and those companies less able to weather the bust financially are always the first to retrench and lay workers off. Maybe the company survives and everyone remaining keeps their jobs and maybe not.
Just the way things have always worked in the auto industry and nothing new.

 

[Carmudgeon]

I truly hate to see people made redundant, since it could just as easily be you or I.
The industry has always functioned on a boom/bust cycle and those companies less able to weather the bust financially are always the first to retrench and lay workers off. Maybe the company survives and everyone remaining keeps their jobs and maybe not.
Just the way things have always worked in the auto industry and nothing new.

That's how life works. The smartest people see the bigger picture, anticipate the trends, and use that to their advantage.

The navel gazers, often prone to gloom and doom and playing the blame game, don't, and can only react.

Stellantis' cause isn't helped by the fact that its U.S. presence consists of Chrysler, Dodge, Jeep, and RAM.

One of those is a dead brand walking, the other brings to mind the thread about Nissan's ills, and deficient identity. Without Jeep and RAM, where would it be?

Its presence outside the U.S. is also a mixed bag, but at least the old PSA brands still carry some weight, if offset by the Italians.

 

[M1Accord]

Dealerships are busting at the seams with vehicles here. Produce anymore, where do you park them? I'd think is smart to cut back production. Nobody would cry for me if I lost my job. Life keeps going on. Nobody needs $82 an hour to install seats. That's a $18 an hour job. If you can't support your family on that, move up or move out.

Salaried employees are mostly office employees from secretaries, assistants, engineers, staffs, and junior managers. This is basically non-executive and non-union workers being laid off.

And seats are installed by robots with union employees standing by.

 

[andrew_j]

Dealerships are busting at the seams with vehicles here. Produce anymore, where do you park them? I'd think is smart to cut back production. Nobody would cry for me if I lost my job. Life keeps going on. Nobody needs $82 an hour to install seats. That's a $18 an hour job. If you can't support your family on that, move up or move out.

lol, $18/hr job. That is not a living wage . Manufacture is bare minimum $25/hr and goes up the more skilled it is.

 

[21_6.7f450]

Andrew,
Let the interns take that $18 then. Move the skilled lug nut torquers elsewhere. It's a corrupt system up. There. It's nor needed, if they can't afford to live on it, again move up or move out. Those "higher tax states " are the fault of people living in them ABSOLUTELY nothing else...elect wisely

 

[GMBoy]

Dealerships are busting at the seams with vehicles here. Produce anymore, where do you park them? I'd think is smart to cut back production. Nobody would cry for me if I lost my job. Life keeps going on. Nobody needs $82 an hour to install seats. That's a $18 an hour job. If you can't support your family on that, move up or move out.

Yeah, except this is for salary employees not the hourly workers who assemble the cars and oh they ain't making $82hr even with benefits factored in.

 

[GMBoy]

This will go exactly as it has in GM and other places - they start by offering it. If not enough volunteers take it they will then start letting people go who are low performers based on their yearly reviews. Then they can and will also refuse it to some who want it based on their importance of job role or exceptional performance. While at GM and knowing I was ready to go I signed up for the salary reduction package that was offered and was refused because I was deemed a critical resource! So, I waited a little bit and finally left on my own in late 2022 anyhow.