Business

Red Lobster has filed for Chapter 11 bankruptcy protection, continuing the process to shrink its footprint and find a buyer, the company said in a statement.
The seafood chain’s CEO blamed “difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition.”
A disastrous “endless shrimp” promotion helped drive the restaurant chain to a net loss last year.

A sign is posted on the exterior of a Red Lobster restaurant on April 17, 2024 in Rohnert Park, California. 
Justin Sullivan | Getty Images

Red Lobster has filed for Chapter 11 bankruptcy protection, continuing the process to shrink its footprint and find a buyer, the company said in a statement.
CNBC reported last month the seafood chain was seeking a buyer, weighed down by significant debt and long-term leases. The company recently appointed a restructuring expert — Jonathan Tibus, a managing partner with advisory firm Alvarez & Marsal — as its CEO.

In a court filing, Tibus blamed “difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition within the restaurant industry” for the chain’s need to file for Chapter 11 protection.
Red Lobster currently operates 551 locations in the U.S. and 27 restaurants in Canada. The chain closed 93 underperforming locations on May 13. The company has 36,000 employees, most of whom work in part-time roles.
Orlando-based Red Lobster has assets between $1 billion and $10 billion and estimated liabilities of $1 billion to $10 billion, according to the bankruptcy filing. Its largest creditor is distributor Performance Food Group, which is claiming the company owes it $24.4 billion.
“This restructuring is the best path forward for Red Lobster,” Tibus said in a statement late Sunday. “It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth. The support we’ve received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests.”
Red Lobster was founded in 1968 and purchased by General Mills two years later. In 1995, General Mills spun off its restaurant division into Darden Restaurants, which also housed sister chain Olive Garden.

Nearly two decades later, Darden sold Red Lobster to private equity firm Golden Gate Capital. Thai Union Group, a seafood supplier and one of the chain’s longtime vendors, bought a stake in Red Lobster in 2016. By 2020, Thai Union, members of Red Lobster management and investors using the alias Seafood Alliance bought out Golden Gate’s remaining stake in the chain.
Although Red Lobster survived the pandemic, its business has struggled since then. The chain’s traffic has tumbled about 30% since 2019, according to the bankruptcy filing.
The company’s longtime CEO Kim Lopdrup also retired in 2021, beginning a revolving door of CEOs that left the chain with little stability to turn around the flailing business. Tibus is Red Lobster’s third chief executive in as many years.
In fiscal 2023, the company reported a net loss of $76 million. Some of that loss was driven by its disastrous “endless shrimp” promotion. Last year, it changed the offer from once a week to daily in an effort to boost slower sales in the second half of the year. But the offer juiced business too much as diners sought cheap deals, pressuring Red Lobster’s bottom line.
According to a court filing, the ill-conceived promotion’s actual aim may have been more about boosting Thai Union’s own sales. Red Lobster got rid of two of its shrimp suppliers under interim CEO Paul Kenny’s leadership, leaving Thai Union as its sole supplier of the crustacean. That decision led to higher costs for Red Lobster, according to the filing. The debtors are also investigating if Thai Union and Kenny pushed excessively for in-store promotions, which often led to major shortages of shrimp.
This story is developing. Please check back for updates. More

The latest round of earnings reports shows some companies struggling as consumers grow more selective with their spending.
Higher prices and interest rates are still lingering, putting pressure on shoppers’ wallets.
Companies like PepsiCo have warned about a weak low-income consumer, while Delta Air Lines and Chipotle Mexican Grill have benefited from their high-income customer bases.

People walk past a Sweetgreen restaurant in Manhattan on September 14, 2023. 
Jeenah Moon | The Washington Post | Getty Images

With higher prices and elevated interest rates stubbornly sticking around, Chipotle burrito bowls and European vacations are still on the table for many consumers. But Big Macs and kitchen remodels aren’t.
The most recent round of quarterly earnings reports helped to sort companies into largely two camps: McDonald’s, Starbucks and Home Depot were among the consumer-centric companies that surprised investors with weaker-than-expected results, saying customers had pulled back on their spending. Others, like Sweetgreen and Delta Air Lines, bucked the trend and reported growth.

The takeaway? Consumers have become more selective about how and where they spend their dollars.
“Consumers continue to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending,” McDonald’s CEO Chris Kempczinski said on the company’s conference call in late April.

Signs for restaurants including Applebee’s, McDonald’s, Pizza Hut, and Burger King are seen along U.S Route 11 in Bloomsburg, Pennsylvania. 
Paul Weaver | SOPA Images | Getty Images

For more than two years, consumers have dealt with sharply rising prices. This year, most companies expect that their pricing strategies will return to their pre-pandemic approaches, thanks to stabilizing commodity prices. But that doesn’t mean the actual prices seen on grocery store shelves or restaurant menus will fall, and shoppers are feeling that pinch.
The consumer price index rose 3.4% over the last 12 months through April, according to Department of Labor data. On Tuesday, a day before the monthly CPI report, Federal Reserve Chair Jerome Powell reiterated that inflation is falling more slowly than expected, which likely means the central bank won’t be cutting interest rates anytime soon.
Making matters worse, many consumers have run through the savings they accumulated during the pandemic when they were collecting stimulus checks in place of traveling. Instead, many are paying their everyday bills with credit cards as they face higher costs for gas, rent and groceries. The average consumer owes $6,218 on their credit cards, up 8.5% year over year, according to a TransUnion quarterly report out last week.

Cautious consumers

Aurelia Concepcion, 57, a case manager in New York, said she is planning only essential travel this year, drawing the line at visiting family in Georgia and Ohio.
“Everything is too high … taxis, rent.” Concepcion says she avoids restaurants: “It’s too expensive. I’d rather prepare my own food.”
Concepcion isn’t the only consumer changing spending habits. Executives have been warning about a more cautious spending environment for awhile. But it’s finally starting to show up in some companies’ quarterly results.
KFC, Pizza Hut and Starbucks were among the restaurant companies that reported declining same-store sales in the most recent quarter. Home Depot’s revenue was weaker than expected because potential customers are putting off renovations until interest rates fall, executives said. And Apple iPhone sales fell 10% in the tech company’s latest quarter, suggesting consumers weren’t upgrading to the latest version of the smartphone in the patterns that they have in the past.

Customers shop at a Home Depot store on November 14, 2023 in Miami, Florida. 
Joe Raedle | Getty Images

“Some of the things that have seen the biggest run-up in prices over the last few years are items that confront people on a daily basis: the cost of eating out, the cost of groceries and the costs of fuel and gasoline and rents,” said Columbia Business School economics professor Brett House. “Regardless of whether inflation is slowing amongst those goods, even with lower inflation, prices remain very high, and people get a daily reminder of that.”
Big-box giant Walmart said last Thursday that shoppers are prioritizing buying food and health-related items over general merchandise, like home goods and electronics. The retailer has reported that trend for several quarters now. Finance chief John David Rainey told CNBC that Walmart’s grocery business has gotten a boost from the widening gap between restaurant prices and the cost of cooking at home. 
Lower-income consumers are struggling more than other demographics. They couldn’t save as much during the pandemic, and evidence suggests that they’ve exhausted those savings, according to House. On top of that, rent prices have surged, and low-income consumers are more likely to rent than own.
PepsiCo, for one, particularly called out a weaker low-income consumer. The Gatorade owner saw volume for its North American beverage business fall 5% in the quarter.
“The lower-income consumer in the U.S. is stretched … [and] is strategizing a lot to make their budgets get to the end of the month,” CEO Ramon Laguarta told analysts on the company’s conference call in April.
Pepsi is leaning into promotions and discounts to lure back the low-income shopper. Other companies are similarly hoping deals will attract more customers. McDonald’s, king of the low-price fas-food segment, plans to start offering a $5 value meal on June 25.

What pullback?

While some CEOs have said that consumers are growing more cautious, others — like those in the airline industry — have celebrated strong and persistent spending.
“Consumers continue to prioritize travel as a discretionary investment in themselves,” Ed Bastian, CEO of Delta Air Lines, the most profitable U.S. carrier, said in an interview in April.
Delta and its rival United last month each forecast earnings ahead of analysts’ estimates for the second quarter. Both carriers offer sprawling global networks and have benefited from a rebound in international travel in the wake of the pandemic, particularly to Europe and popular destinations in Asia for U.S. travelers like Japan. Both carriers have predicted record summer travel demand.
Those airline trends align with a broader consumer shift that started after pandemic lockdowns: spending more money on experiences rather than apparel or electronics.
“We’re still spending disproportionately on activities and services rather than on goods,” House said.

A Delta Airlines Boeing 737-932(ER) is seen at Owen Roberts International Airport (GCM) in George Town, Cayman Islands on February 14, 2024.
Daniel Slim | AFP | Getty Images

Delta and United are also capitalizing on travelers who have been willing to pay up for more expensive seats, like first class or premium economy. U.S. airlines have been racing to add more high-priced seating to their planes and grow lounges for top spenders. Inflation hasn’t hurt high-income consumers as much as it has the budget-conscious, giving them more room to spend.
Higher-income consumers have also bolstered fast-casual restaurant chains, like Chipotle, that come in at a slightly higher price point than the cheapest options. The burrito chain’s same-store sales grew 7% during the first quarter, fueled by a 5.4% increase in foot traffic. Chipotle has a strong perception of value among diners, CEO Brian Niccol said on the company’s conference call. Executives have also previously emphasized that most of its customers come from higher-income brackets.
Even Walmart have been attracting consumers with deeper pockets. As customers pay more for groceries, the discounter has attracted more affluent customers and stolen market share from rivals like Target, which has historically been more popular with wealthier shoppers. The company also credited its remodeled stores and expanded merchandise on its website for appealing to households that have a more than $100,000 annual income. 
Target is scheduled to report quarterly earnings on Wednesday. 

Exceptions to the rule

Not all companies with higher-income customer bases have seen the same strong demand, however. Corporate misfires can also lead to disappointing sales, even if their shoppers aren’t necessarily pulling back on their spending.
For example, athleisure brand Lululemon’s U.S. sales lagged in its most recent quarter, which CEO Calvin McDonald attributed in part to a shortage in key product sizes and not enough colorful items.
Then there’s Starbucks, which has always positioned itself as a premium coffee brand. The coffee giant announced a surprise decline in its U.S. same-store sales and lowered its full-year forecast, sending its shares tumbling. While CEO Laxman Narasimhan gave a laundry list of factors explaining the weak quarter, including a more value-minded consumer, Bank of America analyst Sara Senatore wrote in a research note that a social media boycott might still be the primary culprit.

A customer exits a Starbucks store in Manhattan in New York City.
Spencer Platt | Getty Images

And Peloton’s latest report was the latest in a string of disappointing results for the company. Earlier this month, the pandemic darling fired its chief executive and announced plans to lay off 15% of its staff as fewer consumers bought its pricey equipment or its much cheaper fitness subscriptions in its latest fiscal quarter.
“With the economic outlook for consumers unlikely to improve across the balance of this year, Peloton’s trajectory on the product front is unlikely to change course … But worryingly, app subscriptions are also under pressure – most likely because consumers are reviewing their expenses more carefully as they suffer from subscription fatigue,” GlobalData managing director Neil Saunders said in emailed comments.
— CNBC’s Melissa Repko and Gabrielle Fonrouge contributed reporting to this story.

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Digital pharmacy startup Hims & Hers Health is introducing access to compounded GLP-1 weight loss injections.
The GLP-1 market, dominated so far by pharmaceutical giant Novo Nordisk, has faced supply constraints in recent months as the drugs like Ozempic and Wegovy skyrocket in popularity.
Hims & Hers CEO Andrew Dudum told CNBC the company is “confident” that customers will be able to access a consistent supply of the compounded medications.

Products of Hims & Hers displayed.
Hims & Hers

Digital pharmacy startup Hims & Hers Health is introducing access to compounded GLP-1 weight loss injections, the company announced Monday.
The company, which offers a range of direct-to-consumer treatments for conditions like erectile dysfunction and hair loss, launched a weight loss program in December. But GLP-1 medications — the class of drugs like Ozempic and Wegovy that have skyrocketed in popularity — were not previously offered as part of that program.

Customers can access the compounded GLP-1 medications via a prescription from a licensed healthcare provider on the Hims & Hers platform. Hims & Hers said it plans to make branded GLP-1 medications available to its customers once consistent supply is available.
The company’s oral medication kits start at $79 a month, and its compounded GLP-1 injections will start at $199 a month.
Even before it added compounded GLP-1s to its portfolio, Hims & Hers said in its fourth-quarter earnings report that it expects its weight loss program to bring in more than $100 million in revenue by the end of 2025. The company plans to offer updated guidance in its next earnings report.
The GLP-1 market, dominated so far by pharmaceutical giant Novo Nordisk, has faced supply constraints in recent months as the drugs get expanded approval from health regulators and increased health coverage.
GLP-1s work by mimicking a hormone produced in the gut to tamp down a person’s appetite and regulate their blood sugar. When those medications are in shortage, certain manufacturers can prepare a compounded version of them as long as they meet certain requirements from the FDA.

In a January release, the U.S. Food and Drug Administration said patients should not use a compounded GLP-1 drug if an approved drug like Wegovy is available to them.
Hims & Hers CEO Andrew Dudum told CNBC the company is “confident” that customers will be able to access a consistent supply of the compounded medications.
Dudum said Hims & Hers has spent the last year learning about the GLP-1 supply chain and has partnered with one of the largest generic manufacturers in the country that has FDA oversight.
“We have a certain degree of exclusivity with that facility that will guarantee our consumers consistent volume and supply,” he said in an interview. More

“HE WHO controls the GPUs, controls the universe.” This spin on a famous line from “Dune”, a science-fiction classic, is commonly heard these days. Access to GPUs, and in particular those made by Nvidia, the leading supplier, is vital for any company that wants to be taken seriously in artificial intelligence (AI). Analysts talk of companies being “GPU-rich” or “GPU-poor”, depending on how many of the chips they have. Tech bosses boast of their giant stockpiles. Nvidia’s dominance has driven its market value to more than $2trn. In its latest results, due on May 22nd, it is expected to announce year-on-year revenue growth of more than 200%.GPUs do the computational heavy-lifting needed to train and operate large AI models. Yet, oddly, this is not what they were designed for. The acronym stands for “graphics processing unit”, because such chips were originally designed to process video-game graphics. It turned out that, fortuitously for Nvidia, they could be repurposed for AI workloads. More

Media giants wooed advertisers with star-studded Upfront presentations this year after the end of the Hollywood strikes — but the hangover from the work pause last year showed in content slates.
Sports once again stole the show, from legacy media giants emphasizing the NBA and Summer Olympics, to Netflix’s announcement it will host two NFL games on Christmas Day.
Companies are still focused on streaming, and tech giants that now offer ad-supported platforms touted robust upcoming slates.

Brock Purdy #13 of the San Francisco 49ers prepares to take a snap in the first quarter against the Kansas City Chiefs0 during Super Bowl LVIII at Allegiant Stadium on February 11, 2024 in Las Vegas, Nevada. 
Michael Reaves | Getty Images

Media giants relied on sports last year when they had to woo advertisers during the Upfronts meeting week at a time when a Hollywood strike and cost cutting bit into their content and star power.
This year, while stars once again graced the stages following the end of the strikes, the presentations still leaned more on sports than scripted shows.

The hangover from last year’s work pause meant some media companies had fewer series and movies to highlight during their presentations. Cost cutting from companies including Disney and Warner Bros. Discovery didn’t help matters.
Live sports remained the darling of the Upfront meetings, as it still beckons the biggest audiences, and, therefore, the most advertising dollars.
“I think [the companies] benefited in terms of earnings during the strike. And I think there was hesitance to ramp up because of all the issues of trying to understand how content expenditure was really driving return,” said Tom Rogers, Oorbit Gaming and Entertainment executive chairman and former NBC Cable president.
“There used to be this kind of automatic, where you put out a certain amount of programs for the new season and it was relatively formulaic without much sense of being able to understand how content drove profitability,” he added.
He noted two key issues for the traditional media companies: the decline of traditional TV and the increasing fees companies have to pay to air live sports.

“If you’re going to maintain a reduced level of content spending, by definition, that means your entertainment programming has to be reduced,” Rogers said.

Light on entertainment

A scene from Marvel’s Daredevil season 3 on Netflix 
Source: Netflix

Disney played up trailers for the upcoming Disney+ series “Agatha All Along” and “Daredevil: Born Again,” but for its cable network FX, only highlighted the next season of the popular series “The Bear,” which also streams on Hulu. The company also announced the “Golden Bachelorette,” the next installment in the popular reality series on broadcast network ABC.
Warner Bros. Discovery put series like “House of the Dragon” and “And Just Like That” — both spinoffs of HBO series — front and center.
“A strong content slate — be it sports or entertainment — is only one piece of the puzzle, however,” said Amy Leifer, chief advertising sales officer at DIRECTV Advertising. “With the explosive growth of [ad-supported streaming], the modern TV experience is as dependent on content as it is on the ads that support it.”
Some films played a big role in the Upfronts, especially after streaming services like NBCUniversal’s Peacock got a boost from blockbusters like “Oppenheimer” recently.
Comcast’s NBCUniversal focused on the upcoming musical film “Wicked,” and the renewal of some Peacock original series.

The summer movie box-office season, which runs from the first weekend in May though Labor Day, is expected to shrink around $800 million this year as the season brings a limited and unsteady stream of blockbuster films. It follows a second quarter that lagged nearly 50% behind ticket sales seen during the same period last year.
The movie calendar is expected to ramp up in the fourth quarter, with major titles like Warner Bros.’ “Joker: Folie a Deux,” Paramount’s “Gladiator II,” Disney Animation’s “Moana 2” and Universal’s “Wicked” arriving in cinemas. Calendar 2025 and 2026 are slated to have a significant boost in titles, including features from major franchises like Marvel, Star Wars, Batman, Super Mario Bros. and rollover tickets from a third Avatar film.
Meanwhile, tech giants like Netflix and Amazon Prime Video that recently added cheaper, ad-supported tiers to their streaming platforms entered Upfronts week in full force, showcasing not only sports but also upcoming films and series.
Amazon, which now owns MGM Studios, noted the renewals and upcoming seasons of original series such as “Mr. and Mrs. Smith,” “The Boys,” and “The Summer I Turned Pretty.” Actor Jake Gyllenhaal announced a sequel to “Roadhouse,” and Will Ferrell and Reese Witherspoon discussed their film, “You’re Cordially Invited.”
Netflix, meanwhile, announced the sequel to Adam Sandler’s “Happy Gilmore,” as well as a slate of other series.

Sports domination

The Olympic Rings being placed in front of the Eiffel Tower in celebration of the French capital won the hosting right for the 2024 Summer Olympics.
Sopa Images | Lightrocket | Getty Images

The NFL once again reigned supreme at most Upfront presentations this year.
Tentpole sports programming from the Summer Olympics to the NBA — which beckon the biggest TV and streaming audiences, and vast amounts of advertising dollars — were also key parts of the presentations.
“We often hear from top clients that the significance of upfront buying has diminished outside of securing placements in live sports,” said Mike Dupree, chief revenue officer at Teads, a global premium publishing platform. “Access to quality content in an on-demand world has reduced the scarcity that historically drove the upfront model. Live sports seems to be the last bastion, as proven through rights renegotiations.”
NBCUniversal dedicated much of its presentation on the upcoming Summer Olympics in Paris. The NFL played a role in all presentations, including for the newcomer to the ad-supported streaming landscape, Netflix. It made perhaps the biggest sports splash during Upfronts week, when it was announced hours before its presentation that it reached a deal to air NFL games on Christmas Day over the next three years.
Amazon showcased Thursday Night Football, its second Black Friday game, and an upcoming wild card playoff game in January — the first ever for Prime.
“This year, we saw media giants banking on big bets like “Wicked,” the Olympics, and sports superstars like Jason Kelce to generate buzz,” said Tim Hurd, vice president of media activation at digital marketing agency Goodway Group. “There was a lot of excitement around the evolving live sports landscape and leveraging college sports, NFL games, and the Olympics as an omni-platform experience.”
Kelce, who recently retired from the NFL after 13 years with the Philadelphia Eagles, appeared at Disney’s upfront to announce he would be a commentator for ESPN beginning this season. His appearance made headlines — as he and brother Travis Kelce are prone to doing — when he picked up “Abbott Elementary” star and creator Quinta Brunson during the event.
— Sarah Whitten contributed to this article.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

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Mercedes-Benz workers in Alabama have voted against union representation by the United Auto Workers, the National Labor Relations Board said Friday.
The results are a blow to the UAW’s organizing efforts a month after the Detroit union won an organizing drive of roughly 4,330 Volkswagen plant workers in Tennessee.
The Mercedes-Benz vote was expected to be more challenging for the union than the Volkswagen plant, where the union had already established a presence after two failed organizing drives in the past decade.

United Auto Workers (UAW) members and supporters on a picket line outside the ZF Chassis Systems plant in Tuscaloosa, Alabama, US, on Wednesday, Sept. 20, 2023.
Andi Rice | Bloomberg | Getty Images

Mercedes-Benz workers in Alabama have voted against union representation by the United Auto Workers, the National Labor Relations Board said Friday.
The results are a blow to the UAW’s organizing efforts a month after the Detroit union won an organizing drive of roughly 4,330 Volkswagen plant workers in Tennessee. Voting started Monday and ended Friday.

Union organizing failed with 56% of the vote, or 2,642 workers, casting ballots against the UAW, according to the NLRB, which oversaw the election. More than 90% of the 5,075 eligible Mercedes-Benz workers voted in the election, according to the results.
The NLRB said 51 ballots were challenged and not counted, but they aren’t determinative to the outcome of the election. There were five void ballots. 
The union and company have five business days to file objections to the election, including any alleged interference, according to the NLRB. If no objections are filed, the election result will be certified, and the union will have to wait one year to file for a union election for a similar bargaining unit.
Mercedes-Benz in a statement said company officials “look forward to continuing to work directly with our Team Members to ensure [Mercedes-Benz US International] is not only their employer of choice, but a place they would recommend to friends and family.”

United Auto Workers President Shawn Fain (right) and UAW Secretary-Treasurer Margaret Mock (left) lead a march outside Stellantis’ Ram 1500 plant in Sterling Heights, Michigan after the union called a strike at the plant on Oct. 23, 2023.
Michael Wayland / CNBC

The loss is expected to hurt the UAW in an unprecedented organizing drive launched late last year of 13 non-union automakers in the U.S. after securing record contracts with Detroit automakers Ford Motor, General Motors and Stellantis. Those agreements included significant wage increase, reinstatement of cost-of-living adjustments and other benefits.

UAW President Shawn Fain said while the Mercedes-Benz vote was obviously not the result the union wanted, it was a valiant effort, adding the vote “isn’t a failure” but a “bump in the road.”
“While this loss stings, I’ll tell you this, we’re going to keep our heads up, keep our heads up high. These workers have nothing to do but be proud in the effort they put forth and what they’ve done,” he said Friday during a media conference. “We fought the good fight and we’re going to continue on, continue forward. Ultimately, these workers here are going to win.”
The Mercedes-Benz vote was expected to be more challenging for the union than the Volkswagen plant in Tennessee, where the union had already established a presence after two failed organizing drives in the past decade and where it faced less opposition from the automaker.
Stephen Silvia, author of “The UAW’s Southern Gamble: Organizing Workers at Foreign-Owned Vehicle Plants,” noted Mercedes-Benz replaced the plant’s leader weeks ahead of the election. He said companies routinely do this, promising workers changes at their facilities in an effort to stave of organizing.
“Companies do anti-union campaigns because they can be effective, and I think this one was effective,” said Silvia, a professor at American University in Washington, D.C. “A common piece of an anti-union campaign is firing the plant manager … That seems to have persuaded enough of the workers to vote against the union.”

Alabama Gov. Kay Ivey, who was one of six Republican governors to condemn the union’s organizing drive, hailed the outcome of the vote.
“The workers in Vance have spoken, and they have spoken clearly! Alabama is not Michigan, and we are not the Sweet Home to the UAW. We urge the UAW to respect the results of this secret ballot election,” she said.
Workers at Mercedes-Benz’s Tuscaloosa plant, located about 60 miles southwest of Birmingham, have produced more than 4 million vehicles since the plant opened in 1997, including 295,000 vehicles in 2023, according to the plant’s website.
The Alabama plant currently produces vehicles such as the gas-powered GLE and GLS Maybach SUVs as well as the all-electric EQS and EQE SUVs.
The NLRB last week said it continues to process and investigate open unfair labor practice charges filed by the UAW against automakers, including six unfair labor practice charges against Mercedes-Benz since March.
Fain said Friday the union would continue to move forward with those charges. He declined to say whether the union plans to challenge the election results, saying he’d “leave that” to the union’s legal team.
The charges allege that Mercedes-Benz has “disciplined employees for discussing unionization at work, prohibited distribution of union materials and paraphernalia, surveilled employees, discharged union supporters, forced employees to attend captive audience meetings, and made statements suggesting that union activity is futile,” the NLRB said.
The union has filed other charges against automakers Honda, Hyundai, Lucid, Rivian, Tesla and Toyota, according to the NLRB. More

Frontier Airlines will stop charging to change or cancel a flight, with the fee currently around $99 within a week of departure.
The budget airline is changing its pricing model to bundle perks it long sold a la carte.
The changes come amid stricter rules from the Biden administration on so-called “junk fees.”

A Frontier Airlines plane lands at the McCarran International Airport in Las Vegas on Feb. 27, 2020.
Elizabeth Page Brumley | Tribune News Service | Getty Images

Frontier Airlines said it will stop charging customers a fee to change their flights, taking a page from larger competitors as the Biden administration issues stricter rules targeting so-called “junk fees.”
The change is part of an overhaul announced on Friday of the budget airline’s longtime pricing model, which brings customers in the door with eye-catching low base fares but charges a fee for everything else such as seating assignments and carry-on baggage. That model is shared by fellow discounter Spirit Airlines.

Frontier said it will start offering packages that include some of those add-ons, among others, such as early boarding. While some fares will still allow travelers to add on options a la carte, “we expect that option to be a minority of customers,” Frontier CEO Barry Biffle told CNBC.
A new “economy” bundle that comes with a carry-on and a seat assignment will start at $30 more than a basic fare, while a “premium” bundle that offers those perks plus earlier boarding will be $50 more than the basic fare. For at least $100 more than a basic fare, “business” bundle travelers will also be able to check two bags and get a seat at the front of the plane with more room.
Last month, the U.S. Department of Transportation issued a final rule that requires airlines to tell customers about fees, including those for checked or carry-on baggage, up front, a change the DOT said would save travelers more than half a billion dollars a year.
Frontier currently charges up to $99 to change flights if the change is made within a week of the trip, according to the airline’s website. Larger rivals Delta, American and United scrapped change fees during the Covid-19 pandemic for travelers who were booked in standard economy class and above. Southwest Airlines does not charge customers to change their tickets.
“The truth is the big four [U.S. airlines] all have no change fees on the majority of their products, so we were not as desirable,” Biffle said. He said change fees were a “top complaint” of travelers. Travelers who buy the cheapest option on Frontier will still have to pay to change their flights.
Frontier also said flight credits would be valid for 12 months, up from three months, starting with tickets issued on Friday, and that it will reintroduce live phone support for travelers flying within 24 hours or to elite members of its frequent flyer program.

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Stellantis’ Dodge and Ram brands CEO Tim Kuniskis is retiring after a nearly 32-year career with the automaker and its predecessors, the company announced Friday.
Kuniskis is best known for leading Dodge for much of the last decade and being the so-called father of Dodge’s high-performance Hellcat models.
Kuniskis will be replaced by Chrysler brand CEO Christine Feuell, who will also lead Ram, and Matt McAlear, who will be promoted from Dodge’s sales lead to brand CEO.

Tim Kuniskis, head of Fiat Chrysler’s passenger cars division in North America, reveals the 2021 Dodge Durango SRT Hellcat SUV during an online event on July 2, 2020.
Screenshot

DETROIT – Stellantis’ Dodge and Ram brands CEO Tim Kuniskis is retiring after a nearly 32-year career with the automaker and its predecessors, the company announced Friday.
Kuniskis, who has led several of the carmaker’s brands in North America, is best known for leading Dodge for most of the last decade or so. He is considered the “father” of Dodge’s high-performance Hellcat models and “the unofficial spokesman” for American muscle cars.

During his tenure, Dodge reestablished itself as a quintessential American muscle car brand. The brand did so with vehicles such as the more than 700 horsepower Challenger and Charger Hellcat models and controversial Challenger Demon drag race cars.
Kuniskis will be replaced by Chrysler brand CEO Christine Feuell, who will lead Ram in addition to Chrysler, and Matt McAlear, who will be promoted from Dodge’s sales lead to brand CEO and a member of Stellantis’ top executive team. The appointments are effective June 1, the company said.

2023 Dodge Challenger SRT Demon 170

The changes come as Stellantis carries out a restructuring, including layoffs and cost cutting. It has struggled with U.S. sales, which declined 1.2% last year in a market that grew 12.3%. The company was the only major automaker to report a yearly decline, according to Motor intelligence data.
“I want to take the opportunity to warmly thank Tim for his passion, commitment and contributions to Stellantis and in defining the vision of the future electrified Ram and Dodge brands. I wish him well in his retirement,” Stellantis CEO Carlos Tavares said in a release. “I am confident that Chris will continue the work of Tim in leading the iconic Ram brand. Matt will bring a fresh perspective, while continuing to draw on the heritage of our iconic Dodge brand and leading the transition of the brand toward a sustainable future.”
While the company did not invest in all-new products for Dodge, Kuniskis, a salesperson and marketer, was able to grow awareness and sales of the brand’s Charger, Challenger and Durango vehicles over the years. Dodge often sparked interest by increasing V-8 engine performance or announcing new “buzz” models.

Kuniskis has been a member of Stellantis’ top executive team since the company was established through a merger of Fiat Chrysler and French automaker PSA Groupe in January 2021. He also served on the top board for Fiat Chrysler, under late CEO Sergio Marchionne.
Kuniskis’ departure is the latest in a string of changes to the company since the automaker was established. Recent changes have include a shuffle of Jeep’s top executives; North America head Mark Stewart leaving to become CEO of Goodyear Tire and Rubber Co.; and a shakeup late last year of the company’s international operations like the South America and Asia-Pacific regions, including China.

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