United Auto Workers President Shawn Fain did not hold back when criticizing Stellantis CEO Carlos Tavares in a recent video, accusing him of price gouging consumers and failing to honor parts of the union’s labor contract with the automaker. Fain highlighted issues such as declining sales, stagnant profits, and a significant increase in CEO pay, painting a grim picture of the situation at Stellantis. These accusations are not new, but Fain’s latest comments took the criticism to a new level, alleging that Tavares is prioritizing profits over the well-being of consumers and workers alike.
Tavares, on the other hand, has not shied away from pointing out quality problems within the UAW-Stellantis workforce, specifically citing issues at a truck plant in metro Detroit that produces the Ram 1500 pickup truck. Additionally, the company has announced thousands of layoffs at U.S. plants, further complicating the situation. As Stellantis deals with declining sales and implements changes to its product lineup, the relationship between the CEO and the union leader continues to deteriorate.
Stellantis was formed through a merger between Fiat Chrysler and France’s PSA Groupe in January 2021, and Tavares has since been on a cost-cutting mission to boost profits and revenue. His “Dare Forward 2030” plan aims to double revenue to 300 billion euros by 2030, leading to significant restructuring within the company. Headcount reductions, supply chain adjustments, and operational changes have all been part of the cost-saving measures, resulting in a 15.5% reduction in overall headcount, including a 14.5% decrease in North America. Despite criticism from executives and concerns about the impact of these cuts, Tavares remains steadfast in his belief that the cost-cutting efforts are necessary for the company’s long-term success.
Overall, the ongoing feud between UAW President Shawn Fain and Stellantis CEO Carlos Tavares highlights the complexities and challenges facing the automotive industry. As both sides continue to trade accusations and criticisms, the future of their relationship remains uncertain. However, it is clear that resolving these issues will require open communication, collaboration, and a shared commitment to finding solutions that benefit both employees and the company as a whole.