Stellantis is in serious trouble at the moment, and it shows in the decline in sales. The concern is increasingly facing the challenge of selling off most of its historic brands. Also, Stellantis is in the process of looking for a new CEO to try to turn things around, because it's clear to the lacites that Tavares isn't doing well with his tasks.
The United Auto Workers union UAW has intervened in the discussion about the future of Stellantis after the company threatened to back out of investments promised for its US facilities, the Detroit Free Press reports. The union sued Stellantis over allegations it plans to move manufacturing jobs elsewhere, lay off staff and cut jobs.
But the job cuts are just one of the problems at the automaker, which is tightening the most at its U.S. brands Jeep, Ram, Chrysler and Dodge. The company is struggling with inventory management at a time when sales have been falling steadily, not only in the United States, but also in China and Europe, Jalopnik reports.
UAW President Sean Fein, a consistent critic of Tavares, made a rather loud statement that became the basis for much speculation on the subject: He stated in no uncertain terms “It is up to UAW members to save the company from itself.“
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He accused Stellantis of trying to intimidate union members as they consider decisions, including a national strike, with various phone calls and emails. He urged Tavares to rethink his drastic cost-cutting plan and said the company's cost-cutting was a “dead end”.
The discontent between the UAW and Stellantis stems from the Jeep owner's commitment to invest in manufacturing here in America. The union accused the automaker of “failing its investment commitments” by not reopening the Illinois plant. On the other hand, it is clear that if it comes to strike action, it will further “cripple this company”.
This does not prevent the union from gaining support for strike action in the plants run by Stellanits. In fact, all the local groups in Trenton, Warren and Sterling Heights passed the strike authorization vote, so the outcome is coming.
