You can chalk this one up as yet another failure of Biden and Harris’ Build Back Better Plan. Stellantis, the multinational automotive manufacturing company and the parent company of all of the aforementioned American automobile brands, is in some serious trouble.
The problems of Stellantis are multiple:
- Inventory surplus topped 1 million vehicles in March of 2024.
- Company revenue has declined in 2024.
- Vehicle recalls have been up in 2024.
- Government demand for EVs has created market conflict with buyer demand for ICEVs.
- Vehicle retail prices have exceeded buyer’s price point for affordability.
- China is increasingly becoming a global competitive force in the auto industry.
- Union contracts and agreements are no longer viable for the company.
One gets the impression the UAW is in a fight to save the livelihoods of its members as per this recent post to “X”.
Stellantis CEO Carlos Tavares is out of control. The company sent robocalls to tens of thousands of UAW members trying to tell us how to vote on a strike authorization. We have two words for them: HELL NO. If it takes a fight, we’ll fight. If it takes a strike, we’ll strike.… pic.twitter.com/D0JGg2G9Uc
— UAW (@UAW) October 3, 2024
What is happening with Stellantis and their mismanagement of these brands is historic, “Those who forget history are condemned to repeat it.”
Back in the early 1980’s Chrysler was bailed out by the Federal Government when it was in similar trouble due to corporate mismanagement. Back in 1977 Chrysler was awarded the contract to build the M-1 Abrams tank for the military. This government bailout saved Chrysler as they vowed to only manufacturer a vehicle when there was an order for one. At the time the revolutionary minivan and K-car models saved them. Part of what led to this problem was corporate kept producing vehicles during a national sales slump and then required dealers to buy 5 poor selling models for every 1 highly desirable model. The Feds only stepped in because they wanted to save their new model tanks!
“Struggling Stellantis begins search for CEO to succeed Carlos Tavares” CBS News
An internal memo of last week offers some explanation of what is going on:
“Good afternoon. This is Tobin Williams, head of North America Human Resources. You may have heard the news about the full, year financial guidance the company issued yesterday, and I wanted to reach out to you to provide more context around that decision. We said that 2024 would be a transitional year for the company as it launches new products and the first of our stellar platforms. Combine that with the increasingly challenging and volatile market, and we are facing temporary but serious operational issues to write a shift. We are making hard decisions now to put us in a better position heading into 2025, including making production adjustments as we work to address our issues. U-A-W was talking about striking the company for doing what all of our competitors are doing adjusting our, investment timing as market conditions changed the most important of which is the slowing of the E-B adoption although. We are adjusting our plans we remain, committed to investing in the US to CREATE jobs and support our communities in the near future. The U-A-W may ask you to vote to authorize a strike from our perspective the U-A-W does, not have the legal right to strike be it appending grievances over investment decisions the company most may stay or remain competitive and more importantly a strike right, now has the potential to further weaken the company at a very critical moment for all of us For these reasons. And as our employees and U-A-W members we ask for your, support vote no a strike is authorized based on who votes and how they vote whether it’s ten people or a thousand. If you don’t vote, two thirds of those who do will determine your future. So the vote you cast will have a direct impact on our ability to get the company back on track. Be assure that we have a firm handle on our challenges and a recovery plan to tackle this. It will take all of us working together to ensure that we are appropriately positioned to win going forward. Thank you for your continued commitment and support during this critical time.”
CONCLUSION:
President Joe Biden and UAW president Shawn Fain are two of the biggest failures in leadership in America in this matter. They created this problem. Here is your historical proof.
“Biden touts UAW contract, reopening of Belvidere plant in Illinois visit” – ABC 7 Chicago
One UAW member on the Reddit platform recently posted this very good overview of what Joe Biden and Shawn Fain did with the UAW in Belvidere, Illinois.
Unique_dink-0769. 3d ago.
“Belvidere. It is a legally bound contract. We gave up things to get the gains we won. So we are losing twice. BTW… Stellantis has BILLIONS of dollars sitting on the table for Belvidere. Federal and Local money. They had no intention to abide by the contract. There has been NO MOVEMENT on anything for Belvidere that was promised. Trust and believe if we don’t fight, Durango, RAM and possibly the other few USA builds will be gone. No one wants to strike, but how else do we fight? We can’t lay back and do nothing. What good is a contract then??”
I wrote about this back in when I predicted the Stellantis plant in Belvidere will never reopen under Joe Biden’s failed leadership. I live less than 30 miles from it and have had friends and graduates work there.
“Fact Checking Joe Biden’s State of Illusion”
UAW president Shawn Fain has called for the resignation Stellantis CEO Carlos Tavares. Frankly, after his second endorsement of Joe Biden for president, I think he should tender his resignation as well.
“Stellantis hits back at UAW with federal lawsuit as tensions escalate” – Fox 2 Detroit
Copyright © 2024 by Mark S. Schwendau
