Stellantis CEO Carlos Tavares has come under fire from United Auto Workers President Shawn Fain for what Fain perceives as job cuts and price gouging. The ongoing feud between the CEO and the union leader reached a new level as Fain accused Tavares of prioritizing profits over workers and consumers.
UAW President Criticizes Stellantis CEO
In a video posted on Friday, Fain did not mince words when he called out Tavares for what he believes are unethical business practices. He pointed to declining sales and profits at Stellantis, while noting that the CEO’s pay has continued to rise. Fain’s main concern seems to be the discrepancy between the company’s financial performance and the treatment of its workers.
“Something is rotten at Stellantis,” Fain said in the video. “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 also brought attention to the alleged price gouging by Stellantis, claiming that the company has been making more profits while selling fewer cars. He accused Tavares of reneging on commitments made in the previous labor contract, specifically mentioning the decision to halt plans to reopen an assembly plant in Illinois.
Stellantis Responds to Allegations
Both the union and the automaker have remained tight-lipped regarding Fain’s accusations. Spokespeople for Stellantis have yet to issue a statement in response to the video, leaving the allegations unanswered. It remains to be seen how the company will address these criticisms from the UAW President and whether any changes will be made in response.
Tavares has been vocal about the challenges facing the company, including quality issues at a truck plant in metro Detroit and the need for improvements in plant management. Stellantis has announced layoffs at U.S. plants as part of its efforts to streamline operations and increase profitability.
Cost-Cutting Measures at Stellantis
Since the merger between Fiat Chrysler and PSA Groupe to form Stellantis in January 2021, Tavares has been focused on implementing cost-saving measures to meet ambitious revenue targets. The “Dare Forward 2030” plan aims to double revenue to 300 billion euros by 2030, necessitating significant changes within the company.
One of the key strategies has been reducing headcount and reshaping the supply chain to improve efficiency. Stellantis has cut approximately 15.5% of its workforce, totaling around 47,500 employees, with a 14.5% reduction in North America alone. These measures have been described as grueling by some executives, raising questions about the impact on employee morale and company culture.
Despite the pushback from the UAW and other critics, Tavares has defended the cost-cutting efforts as necessary for the company’s long-term success. He maintains that the changes are essential to address the challenges facing Stellantis and position it for growth in the future.
In conclusion, the ongoing conflict between UAW President Shawn Fain and Stellantis CEO Carlos Tavares highlights the tension between labor interests and corporate profitability. The accusations of job cuts and price gouging underscore the challenges facing the automotive industry as it navigates a rapidly changing landscape. It remains to be seen how Stellantis will address these concerns and whether the company’s cost-cutting measures will ultimately benefit its employees and consumers.