(CBS DETROIT) — Stellantis employees and local United Auto Workers leaders are concerned about the automaker’s future as the company announced that another 1,000 workers will be laid off at its Toledo, Ohio, plant.
“It is management mismanagement and ultimately the responsibility for these problems lies with Carlos Tavares, CEO of Stellantis,” said Luigi Gjokaj, vice president of UAW Local 51.
Gjokaj said he believes Stellantis’ recent problems are the result of mismanagement and not poor market conditions, as the company said in a statement last week.
“It’s a complete misconception. How can you quote market conditions when Ford and GM just reported their fourth quarter? I want to say double-digit overprocessing, so record profits again. It’s not the market, it’s mismanagement,” Gjokaj said.
Gjokaj said the roughly 4,000 layoffs in Michigan, Ohio and Indiana are creating divisions among union members. He said the company is waiting as long as it can legally notify the union of its plan, making it difficult to notify union members of what is happening.
“And I believe the company is using this tactic to sow discord and contentment among its members so that we take our eyes off the ball and always remember that it is the company’s fault,” Gjokaj said.
“This is absolutely a management problem,” says automotive expert John McElroy.
McElroy said the company is certainly struggling with management, but he said there are many more problems.
“The company currently has so many products on the market that are so expensive that it is trying to adjust prices downward. Add more incentives – to reduce production. Some signs are a bit encouraging, but it still has a long haul. It’s a good path,” McElroy said.
Gjokaj said the union is considering all options to address the layoffs at Stellantis.
“We are doing everything we can. We are looking into filing complaints, and if we have to strike, that is also an option,” he said.
Gino Vicci
