Part 6/9:
As regulatory pressure increases and the market shifts towards EVs, Stellantis’s previous strategy of acquiring emissions credits is becoming less viable. With Tesla continuing to report record revenues from these credits, Stellantis finds itself at a crossroads, needing to either ramp up its own EV production or contend with stricter compliance costs.
Labor Challenges and Declining Workforce
The leadership shakeup comes amid significant concern regarding labor relations, as a 15% workforce reduction (approximately 47,500 employees) has stirred unrest among United Auto Workers. Reports have highlighted a growing discontent, with union representatives and dealership owners expressing relief at Tavares's exit, yet also trepidation regarding the company's future direction.