Stellantis CEO faces criticism from UAW president over job cuts and alleged price gouging.

• In a video on Friday afternoon, Shawn Fain, the President of the United Auto Workers, intensified his criticism of Stellantis CEO Carlos Tavares.
• The chief executive was accused by Fain of price gouging consumers and violating parts of the labor contract with the automaker.
• The ongoing back-and-forth between Fain and Tavares regarding the latest comments on the contentious collective bargaining talks last year.

In a video on Friday afternoon, United Auto Workers President Shawn Fain intensified his criticism of CEO Carlos Tavares, claiming that the latter engaged in consumer exploitation and breached certain terms of the union's labor agreement with the automaker.

The ongoing back-and-forth between the CEO and union leader regarding the latest comments on the contentious collective bargaining talks last year between the UAW and Detroit automakers, including Stellantis, has been ongoing.

"Carlos Tavares is the problem at Stellantis, according to Fain, who stated in a 2:30-minute video posted Friday that sales and profits are down, and CEO pay is up, despite the market being favorable for GM and Ford, and the auto workers not being the issue."

Neither the union spokespeople nor the automaker's representatives provided immediate comment on the accusations or video.

Fain's comments on Friday accused Tavares of price gouging consumers in the name of profits, and also claimed that Stellantis is not honoring parts of its worker contract, specifically by halting plans to reopen an assembly plant in Illinois.

"Stellantis has consistently sold fewer cars but made more profits, indicating that they engage in price gouging. However, their recent actions have led to a decline in sales, as CEO Carlos Tavares attempts to renege on commitments made in the last contract, including halting the reopening of the Belvedere Assembly."

Tavares recently criticized the UAW-Stellantis workforce, stating that quality issues are occurring at a truck plant in metro Detroit that produces the Ram 1500 pickup truck. Additionally, the company has announced thousands of layoffs at U.S. plants due to declining sales and product changes.

"Tavares stated during a July 25 press conference that the direct run rate of some of the company's plans, specifically those starting with SHAP, Sterling Heights, is not satisfactory. He emphasized the need for the plant management team and employees to work together to address this issue."

Since the merger between Fiat Chrysler and PSA Groupe in January 2021, Tavares has been focused on reducing costs as part of his "Dare Forward 2030" plan to increase profits and double revenue to 300 billion euros ($325 billion) by 2030.

The company has implemented cost-saving measures such as reshaping its supply chain and operations, as well as reducing headcount for both salaried and hourly workers.

Stellantis has cut its workforce by 15.5%, or about 47,500 employees, from December 2019 to the end of 2023, with a 14.5% reduction in North America. This does not include additional layoffs and headcount reductions that occurred this year.

Tavares last month refuted the notion that CNBC's cost-cutting measures have contributed to its present difficulties.