Stellantis' $25,000 EV Production in US Faces UAW Opposition

author: FutureCar Staff    

Stellantis CEO Carlos Tavares recently emphasized the importance of affordable electric vehicles, stating that a price point of around $25,000 is ideal. He believes that reaching this price range is crucial for the company's long-term US manufacturing presence. Tavares also expressed concern that if automakers cannot absorb the additional production costs required for EVs, the middle class may be unable to afford them.

During negotiations with the United Auto Workers (UAW) union, Tavares emphasized the need to discuss the production of affordable and profitable EVs. He acknowledged that achieving this goal would require collaboration with the union to ensure sustainability and profitability for both parties.

However, Stellantis' goal of reducing fixed costs to make EVs more affordable clashes with the UAW's demands for higher wages and benefits. The current contract negotiations between Stellantis and the UAW are not progressing well, making the likelihood of a $25,000 EV from the company uncertain.

UAW President Shawn Fain criticized Stellantis for taking a "low-road approach" and accused the company of causing plant closures and negatively impacting communities. Fain believes that Stellantis needs to fix its business model before it can achieve the $25,000 target for affordable EVs.

The contract between the UAW and Stellantis, as well as other automakers, is set to expire on September 14. The outcome of the negotiations will have a significant impact on the future of affordable EV production in the US.

Currently, there are no $25,000 EV options available in the US market. The Chevrolet Bolt EV, priced at $27,495 including shipping, is the least expensive option. However, Stellantis has plans to launch two affordable EVs in Europe, priced around 25,000 euros (approximately $27,300). The Citroën e-C3 is expected to arrive in early 2024, followed by a Fiat Panda-inspired model in July 2024.

FutureCar Staff