UAW union president Shawn Fain has expressed harsh criticism towards Stellantis CEO Carlos Tavares, accusing him of price speculation and failing to respect union contracts. These accusations come after the automotive group’s announcement to lay off more than 2,000 workers at the Detroit plant following the end of Ram 1500 Classic production and the temporary closure of the Trenton plant. Moreover, in recent days, Stellantis shareholders in the United States have sued the Group following the publication of disappointing financial data for the first half of 2024.
Stellantis: CEO Carlos Tavares strongly criticized by UAW president
In a video released on Friday, Fain intensified the tensions that had already emerged during last year’s difficult collective bargaining talks, stating: “There’s something wrong with Stellantis, sales and profits are down, while CEO salaries remain extremely high. The problem isn’t the market, as shown by GM and Ford’s growing sales, nor is it the workers. The problem is Carlos Tavares.”
Although many of Fain‘s statements, especially those regarding staff reductions and Tavares’ compensation, are not new, the latest video released by Fain contains particularly harsh criticisms. In it, Fain accuses Tavares of increasing prices under the pretext of improving profits. Moreover, he draws attention to Stellantis’ alleged failure to reopen its assembly plant in Illinois, thus violating the union agreement.
“In fact, for years, Stellantis has sold fewer cars but made more profits. What does that tell you? They’re going overboard on prices. Now they’ve really overdone it and they’re causing their sales to plummet,” Fain observed. His comments reflect growing frustration against the backdrop of changing dynamics within the automotive industry.
Carlos Tavares is drawing numerous criticisms, particularly in the United States, due to his cost containment strategy. This policy is inevitably leading to a reduction in personnel. The tensions with unions thus find an explanation in this context as well.
Shawn Fain‘s recent statements strike at a critical moment, as Stellantis faces quality issues in its production plants, such as the Sterling Heights facility. Tavares himself has recently acknowledged the quality challenges, stating: “The real-time execution rate of some of our plans, starting with SHAP, is not satisfactory. It’s an issue we need to address with our plant management team and our staff.”