United Auto Workers President Shawn Fain recently released a video where he openly criticized Stellantis CEO Carlos Tavares, accusing him of price gouging consumers and failing to uphold parts of the union’s labor contract with the automaker. Fain’s comments shed light on the deteriorating relationship between the CEO and the union leader following contentious collective bargaining talks that took place last year between the UAW and Detroit automakers, including Stellantis.
In the video, Fain expressed his concerns by stating that sales are down, profits are down, and CEO pay is increasing significantly. He pointed out that the issues at Stellantis are not reflective of the broader market conditions, as other automakers like GM and Ford are experiencing growth. Fain directly targeted Carlos Tavares, suggesting that the CEO is the root cause of the problems within the company.
Furthermore, Fain accused Stellantis of not honoring parts of the company’s worker contract, specifically mentioning that the automaker is halting plans to reopen an assembly plant in Illinois. He highlighted the discrepancy between the company’s decreasing car sales and increasing profits, insinuating that Stellantis may be engaging in price gouging practices.
In response to Fain’s criticisms, Carlos Tavares defended the company’s actions by pointing out quality issues at a truck plant in metro Detroit and the need for operational improvements. Stellantis has been undergoing significant changes since the merger between Fiat Chrysler and PSA Groupe, with Tavares implementing cost-cutting measures as part of the “Dare Forward 2030” plan to boost profits and revenue.
As part of the cost-saving initiatives, Stellantis has reduced its headcount by 15.5%, affecting approximately 47,500 employees between December 2019 and the end of 2023. This figure includes a 14.5% reduction in North America alone. Moreover, the company has announced thousands of layoffs at U.S. plants due to declining sales and strategic product changes.
The ongoing feud between UAW President Shawn Fain and Stellantis CEO Carlos Tavares underscores the challenges facing the automotive industry. While Tavares defends the company’s cost-cutting efforts as necessary for long-term sustainability, Fain’s accusations of price gouging and labor contract violations signal deeper issues within Stellantis. As the situation continues to unfold, it remains to be seen how both parties will navigate the complexities of labor relations and corporate restructuring in the coming months.