In response to recent statements by UAW President Shawn Fain during a Facebook live stream, Carlos Zarlenga, COO of Stellantis North America, sent a clarifying email today. After a thorough analysis, Zarlenga contested Fain’s claim that Stellantis had not honored its commitments during negotiations. The email aims to rectify this perception and outline the company’s official position regarding the union’s accusations.
Stellantis clarifies the situation and responds to UAW accusations
Following a careful review and analysis of the situation, Stellantis firmly reiterates that it has fully complied with the obligations assumed under the collective bargaining agreement signed in 2023. The company maintains that it has fulfilled all commitments made, thus refuting the contrary accusations made against it.
The email reads: “The content of Letter 311 is unequivocal. It specifies that the investments and allocations outlined therein are contingent upon approval by the Stellantis Product Allocation Committee and depend on plant performance, evolving market conditions, and continued customer demand that generates sustainable and profitable volumes for the plant in question. Contrary to what Fain has repeatedly and erroneously stated, the investments and timelines do not represent absolute guarantees, but are tied to various factors, including market fluctuations.”
“There is undeniable volatility in the market, especially as the industry transitions to an electrified future. Many automakers are revising their plans. In the past year, there have been numerous announcements of investment and product delays, as well as product cancellations across the industry, leading a respected automotive consulting firm to revise its 2024 electric vehicle sales projections downward by 25% (note: 9% from 12%). The evidence of a dramatic industry transformation and its effects on the market is clear,” the email continues.
“The decision to postpone the timing for allocations to the Belvidere plant is consistent with the current challenging automotive scenario and with the clear language of Letter 311. Contrary to Fain’s account, the Company has not made any statements regarding the allocation of production for the next generation Dodge Durango.”
“Stellantis has announced investments of $6.2 billion in Kokomo in 2022 and 2023 respectively. With those investments plus the recently announced +$400 million in Michigan, we have effectively announced about 30% of the nearly $19 billion included in the 2023 agreement, not just 2% as Fain claims.”
“To be clear, Stellantis has complied and will continue to comply with the agreement reached by the parties in 2023,” the email states. The company affirmed that the CEO and his North American team remain available to meet and discuss these issues in the best interest of Stellantis employees and to help the UAW understand how these actions are appropriate under the CBA.