UAW President Shawn Fain and Stellantis dealers find themselves aligned in a rare moment of unity. They criticize Stellantis CEO Carlos Tavares for what they describe as mismanagement of the automaker. Dealers accuse Tavares of prioritizing short-term profits, leading to dwindling inventories and a sharp decline in U.S. market share. At the same time, the UAW is furious over job cuts and what it claims are broken promises, escalating to a potential strike against the world’s fourth-largest automaker.
Stellantis dealers are facing an inventory overload as EV models roll out while last year’s stock lingers unsold. Dealers, including Ralph Mahalak Jr., who owns multiple Stellantis dealerships across the U.S., voiced frustration over the lack of aggressive incentives to clear these inventories. “I’ve never felt less in control of my business than I do today,” Mahalak stated, pointing to high interest rates and unsold stock.
The Stellantis National Dealer Council echoed this sentiment, calling for production to be ramped up to recover market share. Despite several meetings and calls with Tavares, dealers say the issues remain unresolved. Steven Wolf, owner of Helfman Dodge-Chrysler-Jeep-Ram-Fiat, said the company and its dealers need to collaborate on a stronger incentive program to clear excess inventory and restart the ordering process.
In response, the automaker claims progress is being made. In August, sales grew by 21% over the previous month, market share rose, and inventory levels fell. The automaker insists that collaboration with its dealers produces results and disputes the need for public criticism. However, some dealers, frustrated by the slow pace of improvements, feel time is running out.
The UAW’s relationship with Stellantis is also deteriorating. Union President Fain accused Stellantis of delaying commitments to the Belvidere, Illinois assembly plant, initially slated for revival to produce a midsize pickup. The UAW has filed unfair labor practice charges, alleging Stellantis has violated the 2023 contract. Stellantis denies these accusations, arguing that product plan delays do not breach the agreement and cannot be a cause for a strike.
As Stellantis moves ahead with its costly electric vehicle transition, tensions with both dealers and the UAW threaten to disrupt operations. Both groups seek faster solutions, with dealers demanding immediate inventory incentives and the UAW calling for action on job commitments.
