UAW President criticizes Stellantis CEO for job cuts and alleged price gouging

DETROIT – United Auto Workers President Shawn Fain intensified criticism of Stellantis CEO Carlos Tavares accused the chairman of the board in a video on Friday afternoon of having taken advantage of consumers and of not complying with parts of the collective agreement between the union and the car manufacturer.

The comments are the latest in an ongoing back-and-forth between the CEO and the union leader following contentious labor negotiations last year between the UAW and Detroit automakers, including Stellantis.

“Something is wrong at Stellantis,” Fain said at the start of the 2:30 minute video released Friday. “Sales are down, profits are down and CEO salaries have gone up significantly. The problem is not the market at GM and Ford, car sales are up and the problem is not the auto workers. The problem is this man, Carlos Tavares.”

Spokespeople for the union and the car manufacturer initially declined to comment on the allegations or the video.

Some of the criticisms, including those about job cuts and Tarvares' salary, are not new. But Fain's comments on Friday went a step further, accusing Tavares of paying extortionate prices in the name of profit. He also alleges that Stellantis is not honoring parts of the company's labor contract, citing in particular that Stellantis is shelving plans to reopen an assembly plant in Illinois.

“The fact is that Stellantis has been selling fewer cars for years but making more profit. What does that tell you? They are charging extortionate prices. Now they have gone too far and are driving their own sales into the basement,” said Fain. “The fact is that Stellantis CEO Carlos Tavares is trying to backtrack on the commitments the company made in our last contract, including putting the brakes on the reopening of Belvedere Assembly.”

Tavares recently criticized the UAW-Stellantis workforce, citing quality problems at a truck plant in the Detroit metropolitan area that produces the Ram 1500 pickup truck. The company has also announced thousands of layoffs at U.S. plants due to falling sales and product changes.

“The direct execution rate of some of our plans starting with SHAP, Sterling Heights, is not good,” Tavares told reporters on July 25, discussing ongoing issues with the company. “That's something we need to get right with our plant management team and our people.”

Tavares has been on a cost-cutting mission since the company was created through a merger between Fiat Chrysler and France's PSA Groupe in January 2021. This is part of his “Dare Forward 2030” plan to increase profits and double sales to 300 billion euros ($325 billion) by 2030.

Cost-cutting measures included redesigning the company's supply chain and operations, as well as reducing both salaried and hourly workforce.

Stellantis has reduced its workforce by 15.5%, or about 47,500 employees, between December 2019 and the end of 2023, including a 14.5% reduction in North America, according to public filings. That does not include further cuts and layoffs this year.

Several executives have previously called the cuts at CNBC grueling and downright excessive. Tavares last month dismissed the notion that the company's cost-cutting efforts had led to its current problems.