Fact Check: Stellantis’ firings are not Kamala Harris’ fault

With the Democratic National Convention kicking off on August 19, the 2024 US presidential election season is in full swing.

Vice President Kamala Harris is expected to accept her party’s nomination at the United Center in Chicago, but in the meantime, Vice Presidential hopeful JD Vance has been trying to justify the anti-Trump-Vance ticket since entering the campaign trail in July.

Related: Trump’s VP pick is the EV industry’s worst nightmare

The current vice president and Democratic presidential nominee has been a key point of attack on Vance and Trump. However, at a recent Michigan State rally, Vance made a questionable statement that put Kamala Harris in his direct line of fire.

Republican vice presidential candidate Sen. JD Vance (R-OH) speaks during a campaign rally

Anna Moneymaker/Getty Images

Is Kamala to blame for Stellantis’ cuts?

According to a Bloomberg report, the vice presidential candidate blamed Stellantis (STLA) decision to implement layoffs for 2,450 workers at its Warren Truck assembly plant in the Detroit area.

“Just a few days ago, Stellantis announced it would permanently lay off nearly 2,500 proud Michigan auto workers who produce the iconic Ram 1500,” Vance said at an Aug. 14 rally near Grand Rapids, Michigan. “Kamala didn’t do anything.”

“When American companies threatened to close factories and move them to Mexico and China, remember what Trump did? He picked up the phone and said, “If you do that, I’m going to introduce you to a word called tariff. .'”

Stellantis goes through the wringer

If Stellantis’ recent results for the first half of 2024 are anything to go by, it’s safe to say that the multinational automaker isn’t doing so well.

During his July 24 earnings call, Stellantis CEO Carlos Tavares reported profit losses of more than 48% compared to the same period in 2023, blaming “a challenging industry context” and his own “issues operational” and stated that “significant work (…) particularly in North America” ​​needs to be done “to maximize our long-term potential”.

The “significant work” that Tavares has involved has materialized in recent weeks in the form of aggressive downsizing and layoffs.

The “proud Michigan auto workers” Vance referred to when he blamed Harris work at the Warren Assembly Plant, where up to 2,450 assembly line workers will be laid off after production of the Ram 1500 Classic ends.

More vehicles:

• The Toyota Crown is a master class in cheap and quiet luxury
• Ford is making radical changes that could anger loyal consumers
• Gavin Newsom’s ‘EV mandate’ is threatened by the US Supreme Court

It’s important to note that while the move seems tough on the surface, Stellantis is discontinuing a model that isn’t making them any money.

Introduced in 2019, the 1500 Classic name was designed as a way to sell the previous generation Ram 1500 as a more affordable, no-nonsense option. According to Stellantis, today’s budget-conscious truck buyers scoffed at the Ram 1500 Classic and tended to lean more towards lower-end Ram 1500 models like the Tradesman.

“The Ram 1500 Classic has been an excellent pickup for Ram, and the Tradesman model has represented the needs of commercial truck customers well for years,” Stellantis said in a statement. “We introduced the new 2025 Ram 1500 Tradesman with incredible value and content.”

In addition, the Warren plant itself is not closing. It will move to a single-shift schedule to focus exclusively on the $63,000 Jeep Wagoneer SUV, and the automaker says workers in other operational roles will remain to support production of the luxury SUV.

Related: Stellantis Made ‘Disgraceful’ Move Against UAW Workers

Not just factory workers

Stellantis’ discounts aren’t limited to roles on the factory floor; it also affects their offices.

In mid-August, white-collar Stellantis employees below the level of vice president will receive individual details of a package called the “2024 Voluntary Separation Program.”

In an email to employees shared with the Detroit Free Press, Stellantis emphasized the importance of the program, suggesting more layoffs would occur if not enough employees voluntarily accepted buyout offers.

“We wanted to give you advance notice so that you can carefully consider whether this opportunity might be of interest to you.” Tobin Williams, senior vice president of human resources and transformation, Stellantis North America.

“As always, we would prefer to meet our strategic staffing goals through natural attrition and voluntary programs. Transparently, it is important to note that subsequent involuntary actions may be necessary if we do not meet our goals through voluntary means.”

“Shame,” which isn’t exactly Kamala’s fault

In a statement to Bloomberg, Harris campaign spokesman Joseph Costello pointed out that more American auto workers were hired than “even on the best day of the Trump presidency.”

But while the current administration will be under the microscope, Stellantis’ own moves are not without their critics.

In a statement to Fox’s Detroit affiliate, UAW President Shawn Fain noted that Warren’s layoffs are another example of corporate greed punishing ordinary workers like its UAW members.

“Stellantis CEO Carlos Tavares is a disgrace and a disgrace to a once great American company. While GM and Ford report fantastic profits and increased sales, Stellantis is going backwards. Meanwhile, Tavares raises his salary by 56% while laying off thousands. of auto workers,” Fain told Fox 2 WJBK-TV.

“The American taxpayer invested in Stellantis. Workers invested in Stellantis. Consumers invested in Stellantis. It’s time for Stellantis to invest in us.”

Stellantis NV, which trades on the New York Stock Exchange as STLA, is up 2.58% from the opening bell, trading at $16.30 at the time of writing.

Related: Veteran fund manager picks favorite stocks for 2024