FCA Powertrain, a prominent engine manufacturer, is set to cease operations within the year, affecting all 468 employees, as confirmed by Agnieszka Brania, spokesperson for Stellantis in Poland. The closure comes in the wake of declining demand for combustion engines and new EU emission regulations.
After intense negotiations, an agreement was reached between the company and the union representatives. Employees are offered the option to transfer to other Stellantis factories, with financial support, or to accept generous severance packages. “The packages include multiple monthly salaries to secure the transition period,” Brania stated. Employees have until the end of February to make their decision.
Wanda Stróżyk, head of the Solidarity inter-factory structure, representing union members of Stellantis companies, noted that the severance amount depends on the employee’s tenure, ranging from 8 to 24 months’ salary. Additionally, those opting for a transfer will receive 12 to 14 months’ salary as severance.
The first group of employees is expected to leave in March, estimated to be around 100-140 individuals, with the majority departing in June. “The liquidation will continue till the end of the year, with a possibility of a few staying till then,” added Stróżyk.
Furthermore, a negotiated wage increase of 750 PLN gross per month, effective from January 1, has been secured for every employee.
This decision follows the announcement made on January 3 regarding the liquidation of FCA Powertrain Polska, largely attributed to the EU’s stringent regulations on engine emissions and a decrease in orders for combustion engines.
The closure of FCA Powertrain, a key producer of combustion engines for cars, marks a significant shift in the automotive industry, reflecting the growing trend towards sustainable and eco-friendly alternatives.