Shawn Fain, president of the United Auto Workers (UAW) union, used his speech during the opening night of the Democratic National Convention in Chicago to criticize Stellantis. Fain accused Carlos Tavares’ company of attempting to back out of commitments made during last year’s contract negotiations, which included reopening an idle auto plant in Illinois.
The UAW president (once again) harshly criticizes Stellantis during the Democratic Convention in Chicago
Shawn Fain, who took the helm of the UAW last spring, secured record contracts from General Motors Co., Ford Motor Co., and Stellantis last fall after a six-week strike, during which President Joe Biden also lent his support. Fain has also stoked resentment among corporate executives with confrontational, campaign-style attacks against the automakers.
Stellantis agreed to reopen its Belvidere plant in Illinois, with the initial goal of transforming it into an auto parts center, and then starting production of a mid-size pickup truck by 2027. President Biden endorsed the agreement during a visit to Illinois in November 2023, and last month his administration announced a $334 million grant to Stellantis to support the site’s reorganization for electric vehicle production.
“Stellantis must keep the promises made to America in our union contract,” Fain said during his speech, wearing a red UAW T-shirt with an anti-Donald Trump message. “The UAW will take all necessary actions at Stellantis or any other company to meet their responsibilities and hold American companies accountable,” he stated.
Stellantis, born from the 2021 merger between Fiat Chrysler and the French PSA group, has seen a dramatic decline in sales and market share in the first six months of 2024. Aggressive price increases and an outdated product range have put the company’s vehicles at a disadvantage compared to the competition. The company’s problems became particularly evident last month when it reported a 48 percent drop in net profit in the first half, due to lower sales in its main market, the United States.