As it deals with the financial and logistical fallout of the current strike action by the United Auto Workers (UAW), auto giant Stellantis has decided to pull out of two major upcoming automotive events: SEMA in Las Vegas and the Los Angeles Auto Show.
The UAW strike has put a substantial financial strain on Stellantis, and the company says it has no choice but to pull back on some commitments. The SEMA (Specialty Equipment Market Association) show takes place from October 31 to November 3, the LA Auto Show from November 16 to 26, and both represent quick ways for the automaker to tighten its belt.
Earlier this week, Stellantis also announced it is pulling out of CES 2024, the world’s largest technology show, scheduled for next January in Las Vegas, Nevada.
SEMA has grown rapidly in stature over the past decade and is now considered one of the most important events on the auto show calendar. The Los Angeles Auto Show has long been one of the main U.S. auto shows, even though it has gotten somewhat smaller in the wake of the epidemic and changing priorities on the part of automakers.
In both cases, but particularly SEMA, this decision hurts, with little time given to find alternatives to fill the hole left by Stellantis’ absence. The company had planned to have a strong presence at both shows.
Stellantis’ contingency plan to mitigate the financial strain caused by the labour conflict encompasses other measures as well. The company hasn’t gone into specifics regarding that plan. But these two pullouts show that the labour dispute is having real repercussions on some automakers’ financial bottom line. We could see more drastic measures being taken by American automakers in the coming days and weeks.