In a recent public outburst, United Auto Workers (UAW) President Shawn Fain has stepped up his criticism of Stellantis CEO Carlos Tavares. In a video posted Friday, Fain accused Tavares of overcharging consumers and failing to honor certain aspects of their labor agreement. The video was a continuation of an ongoing dispute following tense negotiating sessions last year with Detroit automakers, including Stellantis.
Fain expressed his concerns, saying: “The problem is clearly with Stellantis’ leadership. Despite declining sales and profits, executive pay remains exorbitant. This is not an industry-wide problem: GM and Ford are doing quite well.”
UAW spokespersons and Stellantis representatives have not yet responded to these allegations.
Fain’s latest statements not only reiterate past complaints about executive pay and operating decisions, they also accuse Tavares of violating previous commitments, particularly stalled plans to resume operations at Belvedere Assembly in Illinois.
Fain stressed, “Stellantis has profited excessively by charging excessive prices for fewer units sold, leading to a decline in its sales figures. Furthermore, Tavares appears to be reneging on key agreements in our latest contract.”
The conflict comes amid broader criticism from Tavares over the UAW-Stellantis workforce, including alleged quality issues at the Sterling Heights plant. The company has also faced significant layoffs across its U.S. facilities due to declining sales and strategic shifts in production.
In a recent press conference, Tavares addressed these operational challenges, emphasizing the need for internal improvements at Stellantis facilities.
Since forming Stellantis from the merger of Fiat Chrysler and PSA Groupe in January 2021, Tavares has actively pursued cost reductions, targeting a significant increase in profits and revenues by 2030 as part of the “Dare Forward 2030” initiative. This has led to major workforce reductions and restructuring across the company’s global operations, sparking further controversy and debate over the sustainability of these cuts.
These developments paint a complex picture of internal conflicts and strategic realignments within Stellantis as the company navigates challenging economic and competitive landscapes.
