Stellantis is navigating rough waters as it pushes forward with its electric vehicle strategy in the U.S. According to a recent report from Automotive News, the automaker is facing significant resistance from both its dealership network and the United Auto Workers (UAW) union.

Dealer Discontent

Stellantis dealers aren’t happy campers. They’re struggling with inventory shortages, which is making it tough to meet customer demand. On top of that, the company’s asking them to shell out big bucks for EV infrastructure. Dealers are worried about whether these investments will pay off, especially in areas where EVs aren’t exactly flying off the lots.

One dealer put it bluntly: “We’re being asked to make substantial investments in EV infrastructure, but the return on investment isn’t clear, especially in our market where EV adoption is slower.”

UAW Tensions Heat Up

The UAW isn’t pulling any punches either. They’re threatening to strike over Stellantis’ delays in reopening the Belvidere Assembly Plant in Illinois. Job security is a big concern for union members as the shift to EV production typically requires fewer workers.

A UAW representative stated, “We’re not going to stand by and watch jobs disappear as the industry transitions to EVs. We need guarantees from Stellantis.”

Stellantis’ EV Game Plan

Despite the pushback, Stellantis isn’t hitting the brakes on its EV plans. They’re pouring over $406 million into three Michigan facilities to support their “multi-energy strategy.” This includes prepping the Sterling Heights Assembly Plant to build the Ram 1500 REV, their first battery-electric pickup.

Stellantis is aiming big, planning to offer 75 BEV nameplates across its 14 brands by 2030. They’re shooting for 5 million BEV sales annually by that year. That’s ambitious, to say the least.

Market Realities

The company’s facing some serious headwinds in the U.S. market. Sales took a 16% nosedive in the first half of 2024, and profits plummeted by 50%. That’s gotta hurt.

Stellantis is trying to walk a tightrope, balancing its EV push with market demands. They’re talking about being “flexible” to meet a wide range of consumer needs. But with other automakers gunning hard for the EV market, Stellantis is feeling the heat to speed up its plans while keeping costs in check.

EVXL’s Take

The road to electrification isn’t always smooth, and Stellantis is learning that the hard way. Their struggles echo similar challenges we’ve seen across the industry. Over at Ford, we’ve reported on their own EV growing pains, including production issues and dealer concerns. And let’s not forget GM’s recent battles with battery problems in their Chevy Bolt.

Stellantis’ situation highlights the delicate balance automakers must strike between pushing forward with EVs and managing the concerns of their traditional business partners and workforce. It’s a transition that’s reshaping the entire auto industry, and Stellantis’ journey will be one to watch closely.

What’s your take on Stellantis’ EV strategy and the pushback they’re facing? Drop your thoughts in the comments below.

Photo courtesy of UAW / LaborNotes.org