Stellantis CEO Under Fire: UAW President Slams Price Gouging and Contract Violations

UAW President Shawn Fain criticizes Stellantis CEO Carlos Tavares for price gouging and labor contract violations. Fain claims Tavares' leadership causes company issues, citing plant closure and profit increases despite fewer car sales. Tensions persist between UAW and Detroit automakers post-bargaining talks.

Staff Editor August 18, 2024 2 min read

UAW President Slams Stellantis CEO Over Labor Practices and Price Gouging

United Auto Workers (UAW) President Shawn Fain has launched a scathing attack on Stellantis CEO Carlos Tavares, accusing him of price gouging consumers and failing to honor commitments made in the union’s labor contract. The criticism came in a video released by Fain, highlighting ongoing tensions between the UAW and Detroit automakers following last year’s collective bargaining talks.

Fain asserted that Stellantis’ current issues stem from Tavares’ leadership rather than market conditions or auto workers’ performance. He specifically pointed to the company’s decision to halt plans for reopening an assembly plant in Illinois, despite previous commitments.

The UAW president claimed that Stellantis has managed to increase profits while selling fewer cars, suggesting price gouging practices. Fain argued that these actions are now negatively impacting the company’s sales.

In response to these allegations, Tavares recently criticized the quality issues within the UAW-Stellantis workforce at a truck plant in Detroit. The company has also announced thousands of layoffs at U.S. plants, citing declining sales and product changes. Tavares emphasized the need to address problems with plant management and workforce quality.

Since the merger of Fiat Chrysler and PSA Groupe in January 2021, Tavares has been implementing aggressive cost-cutting measures. The “Dare Forward 2030” plan aims to boost profits and double revenue by 2030 through reshaping the supply chain, operations, and reducing headcount.

Stellantis has already reduced its workforce by 15.5% between December 2019 and the end of 2023, with a 14.5% reduction in North America alone. Additional layoffs and headcount reductions have continued into this year.

Some executives within the company have described these cuts as grueling and excessive. However, Tavares has pushed back against suggestions that the cost-cutting efforts are responsible for Stellantis’ current challenges.

As of now, neither the union nor Stellantis has provided an immediate response to Fain’s accusations. The situation continues to unfold, highlighting the complex relationship between automakers and labor unions in the rapidly evolving automotive industry.