Leaders from Stellantis and United Auto Workers (UAW) clashed over electric vehicle price points amidst ongoing contraction negotiations between Detroit-Three automakers and union representatives.
Although Stellantis has refused to engage in an EV pricing war with its American competitors, CEO Carlos Tavares has expressed concern over the lack of affordability in the segment. According to Cox Automotive, the average cost of an electric vehicle in June was $53,438, well above the $48,808 average for all new cars during the same period. Tavares is instead targeting an EV price point of $25,000 for the U.S., a goal that has now become a point of contention between the car manufacturer and union leaders.
“We need to work very hard to reach that ($25,000) price point…Part of the things we need to discuss with our union partners is how we make affordable EVs in the U.S. that the middles classes can buy and that they are sustainable because they are profitable,” commented Tavares. But despite expressing support for the automotive industry’s electric vehicle transition, Shawn Fain, president of the UAW, was critical of the CEO’s statements. “The electric vehicle transition does not have to be a race to the bottom,” said Fain, speaking to Automotive News. “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.”
Fain, who has argued that cheaper electric vehicles should not come at the cost of worker pay and benefits, last week threw a proposal drafted by Stellantis into a trashcan during a Facebook live stream. Calling the document “a slap in the face,” the president denounced the car manufacturer for failing to honor the sacrifices union workers made during the COVID pandemic. The UAW is presently seeking a 46% pay raise for its members and is preparing for a strike should negotiations with General Motors, Ford and Stellantis fail to produce acceptable terms.
