This has not been an easy year for Stellantis, the parent company for Ram Trucks, and it’s not about to get any easier. As of Oct. 10, 2024, the automaker confirmed that among various leadership changes, CEO Carlos Tavares is set to retire at the end of his term as CEO in 2026. In a press release, the company stated that it will name successor by Q4 2025.
In August, Stellantis, headquartered in Amsterdam, also laid off 1,100 workers at the Warren, Michigan plant that makes the Ram 1500 Classic, which is being discontinued this year. The Warren Truck Assembly Plant, in operation since 1938, also makes the Jeep Wagoneer and Grand Wagoneer.
Tavares’ departure comes at a turbulent time for the company, especially as the United Auto Workers are threatening to strike against Stellantis. In a news release from the union and in an accompanying video, UAW President Shawn Fain called Tavares out no less than seven times and accused the company of sending robocalls to union members asking them to vote against a potential strike.
“Carlos Tavares is out of control, and it’s once again up to UAW members to save this company from itself,” Fain said in the release. “But it’s clear that Stellantis is scared. They’re scared that our union will finally start fighting back to save our plants and save our jobs.”
The union is considering a strike due to the last trade agreement it made with Stellantis at the end of October in 2023. In the union’s agreement with Stellantis, workers were to receive raises, retain the right to strike over proposed plant closures, and improved pension and 401(k) benefits. Additionally, the company agreed to reopen its plant in Belvidere, Illinois, to produce a new mid-sized pickup while building a battery plant at the same location.
But in the following months, Stellantis held 1,600 temporary factory layoffs in July, made alleged buyout offers to white-collar workers in the U.S. at the end of that month, and announced another 2,450 factory layoffs in August due to ending production for the Ram 1500 Classic. After this, the company also confirmed on August 20, 2024, that it would be delaying plans for the Belvidere plant, “but firmly stands by its commitment.”
Read more: Daimler Truck, UAW reach tentative agreement
UAW filed federal labor charges and grievances against Stellantis in mid-September, later insinuating that the union might strike in an announcement for a Keep the Promise rally and march held Oct. 3.
“The campaign began when UAW locals representing tens of thousands of Stellantis workers filed grievances with the company over its failure to Keep the Promise made in contract negotiations in 2023,” the union said in the announcement. “Once the grievance procedure is exhausted under the national contract, the union may authorize a strike.”
"A strike at one or more Stellantis facilities could begin within weeks," the union added in another announcement.
Stellantis struggles with high inventories, leadership changes
These challenges for Stellantis come as the company is having a less than stellar financial year.
Most recently, Stellantis’ Ram brand’s heavy-duty (2500/3500) commercial fleet total sales increased by 26% year over year, and the Ram brand’s total and retail U.S. sales increased by 3% and 7%, respectively, in Q3 2024 over Q2 2024. Despite this, third quarter total U.S. sales decreased by 20%, the company reported in its Q3 FCA Reports.
Additionally, at the end of September Stellantis expected its adjusted operating income to be between 5.5-7%, down from previous “double digit” values, and its industrial free cash flow is “Expected to range from -€5 billion to -€10 billion.”
Alongside this financial climate, Tavares not only confirmed his departure, but also oversaw a large shift in Stellantis’ leadership team. These included Antonio Filosa replacing Carlos Zarlenga as North America COO, and Doug Ostermann replacing Natalie Knight as CFO, among others.
“During this Darwinian period for the automotive industry, our duty and ethical responsibility is to adapt and prepare ourselves for the future, better and faster than our competitors to deliver clean, safe and affordable mobility,” Tavares said regarding the changes. “The newly appointed leadership team members will make their valuable contributions to our overall team’s determination to tackle the challenges ahead, reinforcing and accelerating our transformation to become the preferred mobility tech company.”
