Stellantis has threatened to move Ram 1500 production to Mexico, union leader says

[wegasque]

Stellantis has threatened to move Ram 1500 production to Mexico, union leader says

Automaker Stellantis has threatened to move the production of Ram 1500 pickup trucks from suburban Detroit to Mexico, a union leader said Sunday. “Then it said they want to take their Ram 1500 [internal combustion engine] and send it to Mexico,” said United Auto Workers (UAW) vice president Rich...

www.yahoo.com

 

[Dewey]

Not surprising. Moving production is a typical scare tactic with these large companies at contract time. Adding in the EV component though makes it a little harder to call the bluff. They just might do it.

 

[OutlawHemi22]

Merging with Peugeot was a ****ing mistake. They don’t give a **** about keeping anything in the States. Wouldn’t be surprised if they do the same **** Daimler did to Chrysler.

 

[logboom]

Things that make you go

 

[6of36]

Thank NAFTA. When they can pay half the wage and no benefits, and not have to pay any tariffs. All management cares about is if they make money. I checked it out a couple years ago, and the pay for the top 10 in management was higher than the rest of the corporation combined. The CEO's salary was enough to give every employee a $10 an hour raise.

 

[Scram1500]

They already stuff the motor with frijoles so why not the rest of the truck?

 

[Malodave]

My '08 Big Horn w/Hemi engine were both made there.

Malodave

 

[6of36]

They already stuff the motor with frijoles so why not the rest of the truck?

All the Hds are already made there. Anything they can do to pay low wages, so the big wigs can make more. Companies have been doing it for years. Where I used to work, our secretary talked how much money her husband was making. His company was adding a Mexican plant, and he was in charge of the mexican stuff. He constantly was traveling to mexico, and was making big money. When the project was complete, he came to work one day, and found his and every other office employees personal belongings in the parking lot. They didn't ADD a Mexican plant, they replaced the American one. Thousands lost their jobs. The high rise building still sits empty. By the way, the company got the tax break to open the American location in the first place.

 

[Cbty2050]

Thank NAFTA. When they can pay half the wage and no benefits, and not have to pay any tariffs. All management cares about is if they make money. I checked it out a couple years ago, and the pay for the top 10 in management was higher than the rest of the corporation combined. The CEO's salary was enough to give every employee a $10 an hour raise.

Stellantis CEO Carlos Tavares had total compensation of $24.8 million in 2022, which is 365 times that of the average employee. Manley, who retired as Stellantis' head of Americas in November 2021 to become CEO of AutoNation, was paid $54.1 million, as part of an agreement inked before the merger with Peugeot.

 

[dannydyn]

WSJ today with an opinion article by the Editorial Board:

The Electric-Vehicle Bubble Starts to Deflate

Traditional auto makers will have to raise prices on gas-powered cars to compensate for their EV losses. A United Auto Workers executive said Sunday that Stellantis is threatening to move production of its Ram 1500 trucks to Mexico from suburban Detroit, no doubt to reduce costs. The EV jobs President Biden touts will come at the cost of union jobs building gas-powered vehicles.

 

[Dewey]

WSJ today with an opinion article by the Editorial Board:

The Electric-Vehicle Bubble Starts to Deflate

Yet the unions still support Democrats. Hate to get political but it’s true. This is coming from a 25 year union member.

 

[GMetal]

The final cost will never go down. The profit will just get bigger. I guess thats great if you own stock?

 

[MarPar]

The UAW killed Detroit.

 

[Rick3478]

Stellantis CEO Carlos Tavares had total compensation of $24.8 million in 2022, which is 365 times that of the average employee. Manley, who retired as Stellantis' head of Americas in November 2021 to become CEO of AutoNation, was paid $54.1 million, as part of an agreement inked before the merger with Peugeot.

Probably in addition to stock options, golden parachute retirement plans, etc.

 

[jimothy]

Thank NAFTA. When they can pay half the wage and no benefits, and not have to pay any tariffs. All management cares about is if they make money. I checked it out a couple years ago, and the pay for the top 10 in management was higher than the rest of the corporation combined. The CEO's salary was enough to give every employee a $10 an hour raise.

Your math is just a wee bit off. By a factor of 200.

Stellantis has about 273,000 employees. Carlos Tavares 2022 salary was about $25M. If he surrendered his entire salary, each employee could get a $95/year raise, or under five cents an hour (assuming 2,000 hours/year). Which amounts to an additional coffee every two weeks.

Folks, when you hear numbers like this, you should immediately become skeptical. Large companies like Stellantis have payrolls in the billions; Stellantis's is about $20B.

A $25M salary is a lot—maybe too much—but divided over hundreds of thousands of workers, it doesn't go nearly as far as you might think.

 

[GMetal]

What makes that $26M salary worthwile? Do they produce better products or just higher profits? Are the customers happy? Are the shareholders happy?

 

[RAL]

I am not going to justify the CEO’s salary but it is irrelevant economically relative to the cost and competitive pressures faced by all companies, including automakers. Many years ago, Rick Wagoneer, the CEO of GM commented that he was really the CEO of a healthcare and retirement benefits company that also makes cars. If any carmaker gets itself into that position again, it may have to go through bankruptcy again, like GM did, but the union may not get the same deal the Obama Admin (a gift essentiall) in the form of a piece of the new company that emerged from bankruptcy. So while I want to see the workers get a fair deal, I tend to think that the UAW is difficult and leads to the US based carmakers being less competitive.

 

[6of36]

Your math is just a wee bit off. By a factor of 200.

Stellantis has about 273,000 employees. Carlos Tavares 2022 salary was about $25M. If he surrendered his entire salary, each employee could get a $95/year raise, or under five cents an hour (assuming 2,000 hours/year). Which amounts to an additional coffee every two weeks.

Folks, when you hear numbers like this, you should immediately become skeptical. Large companies like Stellantis have payrolls in the billions; Stellantis's is about $20B.

A $25M salary is a lot—maybe too much—but divided over hundreds of thousands of dollars, it doesn't go nearly as far as you might think.

Where did you get 273,000 employees? I don't remember the number, because it was a couple years ago, but the number I found was under 100,000. And I said top 10 salaries, with bonuses. So it wasn't $10. It was a couple years ago.

 

[6of36]

The UAW killed Detroit.

The UAW is not the best example of a union, most unions aren't out to just screw the company, like they are, but unions did not kill Detroit. Detroit's former mayors did that.

 

[6of36]

I am not going to justify the CEO’s salary but it is irrelevant economically relative to the cost and competitive pressures faced by all companies, including automakers. Many years ago, Rick Wagoneer, the CEO of GM commented that he was really the CEO of a healthcare and retirement benefits company that also makes cars. If any carmaker gets itself into that position again, it may have to go through bankruptcy again, like GM did, but the union may not get the same deal the Obama Admin (a gift essentiall) in the form of a piece of the new company that emerged from bankruptcy. So while I want to see the workers get a fair deal, I tend to think that the UAW is difficult and leads to the US based carmakers being less competitive.

The foreign companies pay about 95% of what the big 3 pays.