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Europe’s Electric Vehicle Woes Are a Lesson for EVs Everywhere

Updated: 24-10-2024, 02.04 PM

Electric cars got top billing at this year’s Paris Auto Show. At the world’s largest such showcase, a central exhibition hall featured an “electric factory” display designed, in the colors of the French flag, to mimic the spine-like assembly lines that churn out electric cars and internal combustion engines. Along the exteriors of those lines were a series of questions answered inside of them, where clumps of teens on school trips and car enthusiasts stood by read to hear the answers: are electric vehicles produced in France? What new professions are created by electric vehicle production? Just outside the exhibition grounds, autoworkers that spend their days in real-world auto factories had a question of their own: Why are so many of them losing their jobs?

A few hundred trade unionists from France, Italy, the United States and elsewhere gathered in the rain to rail against Stellantis chief Carlos Tavares, the embattled CEO whose global auto group is fending off accusations of mismanagement from workers and investors alike. Late last month, Stellantis issued a profit warning amid lower than expected sales “across most regions.” The company has temporarily suspended production of its fully electric Fiat 500e, citing low sales as it temporarily lays off workers in Italy; Stellantis plans to start producing a hybrid version of the car in 2025 or 2026. Similarly, in the United States, the company has blamed “market conditions” to backtrack on a pledge—enshrined in its contract with the UAW—to re-open and expand an idled plant in Belvidere, Illinois to include a $3.2 billion battery plan. Stellantis recently announced, too, that it will expand production of its best-selling, gas-powered Dodge RAM pick-ups in Mexico. Starting on October 12, they began laying off approximately 1,100 workers from their Warren Truck Assembly Plant in Michigan after ending production of the RAM 1500 Classic pickup there.

On October 18, Stellantis workers in Italy carried out a 24-hour nationwide strike, culminating in a rally that brought an estimated 20,000 people out to Rome’s Piazza del Popolo. UAW members recently authorized their own strike against Stellantis, and are in tense negotiations with the company over unrealized investment commitments. The company has filed 9 federal lawsuits against the UAW and 2 dozen locals disputing the union’s contract violation claims and right to strike over them, arguing the pledge was always “contingent upon plant performance, changes in market conditions and consumer demand.”

Amid all this, Tavares has tried to paint himself as a stalwart defender of electrification, ready to weather the winds of change even if that proves difficult in the near-term. Speaking to the Financial Times at the Paris Auto Show, he warned that slowing the transition to electric vehicles would be “a big trap,” and blamed governments for failing to provide adequate incentives to make the switch. Unions on either side of the Atlantic, however, argue that they’re paying the price for Stellantis’s longtime, short-term focus on maximizing profits and executive pay.

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