Stellantis brings on EV expert to lead N. American manufacturing

Stellantis has tapped Tim Fallon as its new head of North American manufacturing, effective Sept. 2.

Catch up quick:

• Fallon joins Stellantis after spending 2 years at Rivian, where he led EV manufacturing operations. Before that, he spent over 16 years in production roles at Nissan.

• He replaces Mike Resha, who led North American manufacturing since 2020. Resha will now oversee global injection and stamping operations, according to a press release.

Why it matters: Fallon’s arrival comes at a critical moment Stellantis. The automaker is dealing with production slowdowns, layoffs, and labor disputes that are putting major pressure on its North American plants.

Zooming out: Stellantis has been treading in rough waters. A serious slowdown in sales and bloated inventories has led the automaker to embark on a cost-cutting crusade.

• The company is laying off 2,450 workers at its Warren, Michigan plant, which builds the Ram 1500 Classic and Jeep Wagoneer models.

• Between December 2019 and the end of 2023, the company reduced its workforce by 47,500 employees.

Another headache: Stellantis is also tangled up in a high-stakes dispute with the United Auto Workers (UAW), who accuse the company of violating UAW contracts to reopen a closed assembly plant in Belvidere, Illinois.

• “The UAW will take whatever action necessary at Stellantis or any other corporation to stand up and hold corporate America accountable,” said UAW Chief Shawn Fain at Monday's Democratic National Convention.

• Stellantis denies the UAW’s claims and argues that any strike action would be illegal.

What’s next: Adding to the pressure, Stellantis shareholders have sued claiming the company inflated its stock prices by misrepresenting its performance earlier this year. Stellantis issued a firm denial of the allegations.

Of note: CEO Carlos Tavares plans to visit Detroit this week to develop a long-term strategy for fixing its North American operations.

Bottom line: Tim Fallon has a tall order ahead of him but his EV chops will come in handy as Stellantis goes on an electrified offensive. Jeep, Dodge, and Ram EVs are expected to launch in the U.S. later this year.

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