UAW President Blasts Stellantis CEO Tavares In Recent Video

In a recent video, United Auto Workers (UAW) President Shawn Fain delivered sharp criticism of Stellantis CEO Carlos Tavares, accusing him of price gouging and failing to uphold commitments made in the union’s labor contract with the automaker. Fain’s comments are the latest in an ongoing conflict between the union and Tavares following last year’s contentious collective bargaining talks between the UAW and the Detroit automakers, including Stellantis.

“Something is rotten at Stellantis,” Fain stated at the beginning of the 2:30-minute video posted on Friday. He pointed to declining sales and profits at Stellantis, contrasting them with Tavares’ rising compensation. “Sales are down, profits are down, and CEO pay is way, way up. The problem isn’t the market at GM and Ford; auto sales are up, and the problem isn’t the auto workers. The problem is this man, Carlos Tavares.”

Fain’s accusations extend beyond criticism of Tavares’ pay. He accused Stellantis of price gouging consumers to boost profits, a strategy he claims has backfired, leading to declining sales. Fain also alleged that Stellantis is not honoring parts of the company’s worker contract, specifically pointing out the halted plans to reopen the Belvedere Assembly Plant in Illinois.

“Fact, for years, Stellantis has sold fewer cars but made more in profits. What does that tell you? They’re price gouging. Now they’ve gone too far, and they’re tanking their own sales,” Fain said. He further criticized Tavares for reneging on commitments made during the last contract negotiations, particularly concerning the reopening of the Belvedere Assembly.

Tavares, in response, has previously acknowledged challenges within Stellantis, including quality issues at the Sterling Heights Assembly Plant (SHAP) in Michigan, which produces the popular Ram 1500 (DT) pickup truck. He has also emphasized the need for improvements in plant management and worker performance. Tavares has been on a cost-cutting mission since Stellantis was formed in 2021 through a merger between Fiat Chrysler Automobiles (FCA) and France’s PSA Group. His “Dare Forward 2030” plan aims to double revenue to €300 billion (approximately $325 billion USD) by 2030, partly by reshaping the company’s supply chain and operations and reducing headcount.

The cost-saving measures have been significant, with Stellantis reducing its global workforce by 15.5%, or about 47,500 employees, between December 2019 and the end of 2023. This includes a 14.5% reduction in North America. These reductions have drawn criticism from various quarters, including Stellantis executives who have described the cuts as excessive.

“It’s time to put an end to corporate greed at Stellantis,” Fain concluded. “It’s time for Stellantis to invest in us. It’s time for a change, and that starts with the man at the top.”

Stellantis and the UAW have not released official responses to the latest video, but the ongoing tension underscores the challenges the automaker faces as it navigates a difficult market environment while trying to maintain profitability and satisfy its workforce.

Source: UAW