STLA CEO gets big bonus as suppliers demand a share and GM moves its HQ

Automotive News reported in an exclusive story that Wrangler and Gladiator production was temporarily stopped as Kamax refused to ship fasteners until they got an inflation adjustment to their prices. Since Kanax failed to have inflation adjustments in their contract, Stellantis was able to get a judge to order them to keep sending parts. The article also noted that MacLean-Fogg, which supplies transmission gears and pinions for rear-drive Jeeps and Rams, also cut off the company until they negotiated a deal—but Stellantis allegedly didn’t actually pay as agreed, and MacLean-Fogg cut the company off again.

Carlos Tavares

While a temporary stop of Gladiator production is likely not a problem, given the massive incentives needed to move 2023 models, the Grand Cherokee and Ram 1500 are more critical. Stellantis remains the lowest ranked automaker in a key supplier survey, and Automotive News reported that some suppliers are thinking about not selling to the company in the future. Suppliers claim that their expenses have risen dramatically due to inflation, while Stellantis may simply be claiming that a contract is a contract, and if they accept these price increases, it may have a material impact on their ability to compete. Many suppliers have declared healthy profits in the last few years.

With this news coming out on Monday and Tuesday, and layoffs in Italy, France, and the United States still fresh, it may have been bad timing for the board to give Carlos Tavares, the CEO, a 56% compensation hike, reaching €36 million ($40 million) for 2023, up from €23 million for 2022. This includes both cash and equity, and a €10 million incentive for meeting mobility, technology, and electrification goals. Tavares was paid 518 times the compensation of the average Stellantis employee, according to Automotive News.

In the meantime, GM has decided to move its headquarters from the Renaissance Center, in which it owns a stake, to the new Hudson’s Detroit development, with a 15-year lease. It will be leasing the top floors. It will likely be quite expensive for GM, but will certainly help local businesses, since the “RenCen” is essentially a landlocked, enclosed complex.

Discover more from Stellpower - that Mopar news site

Subscribe now to keep reading and get access to the full archive.

Continue reading