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Reading: Stellantis’ goal of launching a $25k EV in the US collides with UAW demands
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EV-a2z > News > Stellantis’ goal of launching a $25k EV in the US collides with UAW demands
News

Stellantis’ goal of launching a $25k EV in the US collides with UAW demands

EV-a2zm
Last updated: 2023/08/18 at 2:46 PM
EV-a2zm Published August 15, 2023 3 Min Read
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The Stellantis logo and new flags are installed at Mirafiori. Stellantis was created from the merger of the Fiat Chrysler Automobiles and PSA industrial groups
The Stellantis logo and new flags are installed at Mirafiori. Stellantis was created from the merger of the Fiat Chrysler Automobiles and PSA industrial groups
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Stellantis Chief Carlos Tavares previously asserted that the optimum price of an affordable electric vehicle is “around $25,000.” Offering EVs with this low pricing is apparently crucial for the multinational automaker’s long-term business prospects.

CEO Tavares further stated that automakers’ failure to endure the necessary extra manufacturing costs would lead the middle class out of the industry.

More interestingly, he also claimed that having a profitable yet affordable offering should be the focus of the discussions with the United Auto Workers (UAW) union this year.

“We need to work very hard to reach that point. Part of the things we need to discuss with our union partners is how we make affordable EVs in the US that the middle classes can buy and that they are sustainable because they are profitable.”

Stellantis Chief Carlos Tavares

What’s the issue?

Stellantis’ intention to offer affordable EV models in the US is indeed remarkable. It can potentially encourage more customers to consider the shift. As we all know, affordability is among the top concerns of price-conscious EV buyers.

The automaker aims to make it possible by lowering its fixed-cost structure. However, it clashes with the UAW’s call for higher salaries and benefits.

Negotiations Update: what the #UAW is demanding vs. what Stellantis is proposing pic.twitter.com/LX1a2tjXl2

— UAW (@UAW) August 8, 2023

Therefore, Stellantis’ plan to produce $25k EVs is currently unattainable as the UAW does not approve its approach. For context, its four-year contract with the UAW will expire on September 14, 2023.

UAW President Shawn Fain even argued that automakers must not compromise workers’ rights in their strategies to develop low-priced EVs.

“The electric vehicle transition does not have to be a race to the bottom. Unfortunately, Stellantis has taken the low-road approach, resulting in closed plants and destroyed communities. Stellantis’ business model is broken, and until they fix it, they’ll never hit that $25,000 target.”

UAW President Shawn Fain (via Automotive News)

Shawn Fain, president of @UAW, just went live to read the contract proposals from Stellantis, which owns Chrysler and Fiat.

Fain is pushing for big gains in this contract, and says that Stellantis is only looking for concessions.

So he throws the document in the trash. pic.twitter.com/arE3guzeSH

— More Perfect Union (@MorePerfectUS) August 8, 2023

President Fain even showed his disposal of Stellantis’ proposals during a live stream last week. He also stated that the automaker “spit in the face” of the organization members with its proposed changes.

For context, Stellantis apparently plans to implement more stringent worker attendance rules and lower their healthcare coverage, among others.

While vacationing in his second vacation home in Mexico, Stellantis COO Mark Stewart wrote a letter calling UAW workers demands for a 40% wage increase—that would match the increase in CEO salaries—out of step with "reality" and "economic realism." pic.twitter.com/3zLLEPuJz8

— Status Coup News (@StatusCoup) August 12, 2023

See Also:

  •  Stellantis to launch more affordable, sub €25K Fiat EV
  • Stellantis introduces battery system that may pave the way for smaller and cheaper EV models
  • Toyota and Stellantis oppose Biden Administration’s proposed ambitious tailpipe emission limits 
  • Canada to offer billions in incentives to Stellantis and LG for a new EV battery factory
  • Stellantis hints at new compact and midsize EVs with up to 435 miles between charges

The US currently has no $25K EV offering. As of now, the Chevrolet Bolt EV is the most affordable option for US-based customers.

Nonetheless, Stellantis will soon market two low-priced EVs in Europe at approximately €25K ($27,300). 

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TAGGED: Electric Vehicle, EV, Stellantis, USA
EV-a2zm August 18, 2023 August 18, 2023
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