On Friday, while workers engaged in producing Ram 1500 pickup trucks at the Sterling Heights Assembly Complex were working as usual, their colleagues from the UAW union gathered outside the factory. The aim was to send a message to Stellantis CEO Carlos Tavares, who was visiting the United States to implement a new strategy, following disappointing results in the first half of 2024.
UAW members marching demand Stellantis CEO keep promises on Belvidere
Despite Tavares‘ absence, as reported by union representatives, workers and United Auto Workers leaders hoped the message would still be clear. They wanted to emphasize the importance of their American workforce and reiterate that the company must continue to invest in plants like Sterling Heights. They also drew attention to the fact that Stellantis must keep the promises made in the union contract signed in 2023, including restarting operations at the Belvidere assembly plant in Illinois, which the automotive group recently announced would be delayed in reopening.
Stellantis spokeswoman Ann Marie Fortunate stated that a review of progress at Sterling Heights was conducted on Friday: “We thank the SHAP team for the remarkable progress made in recent months,” she said in an emailed statement.
This week, Carlos Tavares spent several days in Detroit. He described this year as “humbling” for the company, especially regarding North American operations, usually a source of high profits, which struggled with slow sales and excessive inventory. According to Reuters, the purpose of Tavares’ visit was to develop a restructuring plan. A visit to the Sterling Heights plant was scheduled for Friday, a crucial facility that Stellantis’ CEO had recently criticized for overproducing trucks that subsequently required repairs.
Tavares arrived in the United States this week amid growing tensions between his company and the UAW. The union released a video last week attacking Tavares and accusing the company of price gouging. On Monday, it filed grievances and threatened to strike over the company’s delays in reopening the Belvidere plant.
UAW President Shawn Fain then criticized the company at the Democratic National Convention. The company retorted that a strike would be illegal under the contract terms, adding that it needed to delay Belvidere’s reopening due to market conditions and the need to “accommodate a wide range of consumer demands.” In short, the situation is becoming increasingly complicated and doesn’t seem likely to end anytime soon.