Stellantis prioritizes Wall Street dividends over US plant investments

Stellantis has announced plans to allocate billions towards stock buybacks and dividends, a decision that has raised concerns as many autoworkers face layoffs and numerous auto plants across the United States remain underutilized.

During the company's annual shareholder gathering in Amsterdam, Stellantis' Board of Directors gave the green light to a $2.6 billion dividend. Additionally, they are exploring the possibility of a further stock buyback, potentially up to 10% of the company's stock, valued at $2.6 billion.

The United Auto Workers (UAW) is urging supporters of the working class to join a petition demanding Stellantis invest in its workforce rather than focusing on Wall Street gains.

UAW President Shawn Fain expressed his discontent, stating, “Two weeks ago, Stellantis said the sky was falling because of auto tariffs, and said they had to lay off workers, claiming they are losing money. But then all of a sudden, a miracle happened: they found billions of dollars, nearly half of last year’s profits, to pay to Wall Street!” He continued, “This is everything that has been wrong with corporate America for decades. Instead of investing in the autoworkers and facilities that make this company run, Stellantis is putting Wall Street over Main Street. Stellantis could create thousands of good paying jobs in America in very short order by utilizing excess capacity in places like Toledo South Assembly in Ohio, Belvidere Assembly in Illinois, Mack, Warren, Trenton Engine in Michigan, and plants in Kokomo, Indiana. It’s time for Stellantis to stop looting the Rust Belt for short-sighted Wall Street jackpots. INVEST IN US!”

With a potential $5 billion investment, Stellantis could reopen several plants, reduce vehicle costs, and increase its presence in the US auto market. Instead, the decision has been made to direct these funds towards Wall Street.

Some investors are also expressing dissatisfaction with Stellantis’ $25 million severance package for ousted CEO Carlos Tavares, whose leadership was marred by controversy. This move is a part of the UAW’s Keep the Promise campaign, which led to Tavares' removal after his poor stewardship.

The call to action remains for Stellantis to refocus on producing quality vehicles in the United States and utilize their idle capacities for the benefit of taxpayers, consumers, and, most importantly, autoworkers.