Stellantis NV on Wednesday recommitted to building a new midsize pickup truck at a shuttered assembly plant in Belvidere, Illinois, and the next-generation Dodge Durango SUV in Detroit, raising concerns from the United Automobile Worker over those assembly locations. Resolved a long-simmering dispute with the union. product.
The announcement comes after Stellantis Chairman John Elkann met with President Donald Trump and the automaker announced plans for its U.S. The move comes days after the company shared that it plans to shore up its manufacturing footprint and provide “stability” to its U.S. employees. .
For months, unions have accused the automaker of reneging on investment commitments made in its 2023 labor contract. These include delays in reopening the Belvidere assembly plant and plans to move future Durango production from the Detroit assembly complex in Jefferson to Canada, although the company has not confirmed plans to move the SUV. Ta.
The UAW has filed complaints against the company since last summer over an investment dispute and has repeatedly threatened to go on strike as the company fights back with lawsuits and other measures. The union dropped those grievances late last year, but officials said they were prepared to reinstate them and vote to authorize a strike in the coming weeks if necessary.
Now, the UAW confirmed Wednesday that those grievances have been resolved. Among other things, the resolution calls for the resignation of CEO Carlos Tavares, who has had a rocky relationship with labor unions, and threatens to impose tariffs on products from Mexico and Canada, forcing companies like Stellantis to The move comes after President Trump took office this week, pushing for manufacturing to relocate. State side.
In a memo to employees on Wednesday, Filosa said Stellantis had previously said production plans would be delayed, but has recommitted to producing an unnamed mid-size pickup truck in Belvidere by 2027. said. This means returning about 1,500 UAW workers to the field. The Belvidere plant investment will be worth $1.2 billion, according to a statement from Democratic Sens. Dick Durbin and Tammy Duckworth of Illinois.
The company is still considering plans to build a parts megahub at the plant, which was originally scheduled to open last year under contract, said Jody Tinson, a spokeswoman for the company. Plant upgrades have not yet begun.
The email added that the next-generation Durango will continue to be produced at its current location in Detroit, after the union announced the company is looking to move the large SUV to Windsor. , this was a change in policy. The Jefferson plant, east of Detroit, employs about 4,100 people and also produces the Jeep Grand Cherokee. The company faced several layoffs and production suspensions last year due to weak sales and inventory issues.
By late last year, local union leaders in Jefferson were confident that Durango would not be retired after reassurances from the automaker. However, Stellantis and the UAW have not made any official announcements until now. It’s unclear when production of the new Durango will begin, but the union contract states 2026.
Stellantis also announced that it will invest in two facilities in northwestern Ohio, the Toledo Assembly Complex and Toledo Machinery Plant, as well as a facility in Kokomo, Indiana that will manufacture the GMET4 EVO inline-four turbo engine. The union said the commitment to a second phase of engine production in Kokomo reversed the company’s previous plans to move that work overseas.
“This victory is a testament to the power of workers to come together and hold billion-dollar corporations accountable,” UAW President Sean Fein said in a statement. “We have shown that we will do what it takes to protect the good union jobs that are the lifeblood of communities like Belvidere, Detroit and Kokomo.”
Filosa wrote that the company will “grow automotive production and manufacturing here” in the United States. That’s a different approach than the company took for much of last year under the Tavares administration to reduce its U.S. blue-collar workforce.
Stellantis has been in a tough spot in 2024, with sales and profits declining sharply, but Filosa told reporters at the recent Detroit Auto Show that a key part of the transatlantic company’s turnaround was to focus on dealers. The aim is to put a new focus on reviving the US market, including by repairing relations with the US. suppliers, unions, and others.
Wednesday’s investment announcement comes as President Trump threatens to impose new tariffs on Mexico and Canada, in part to force companies to produce more goods domestically.
The automakers have long maintained large manufacturing sites in both countries’ neighboring countries, and the UAW has repeatedly raised concerns in recent months that Stellantis, under Mr. Tavares, plans to move more of its operations outside the United States. It was stated.
But then Trump was elected, and Tavares suddenly left the company late last year. UAW officials said Fein and Filosa had productive conversations and that relations between the two teams have improved in recent weeks. A letter from Fein and Kevin Gochinski, who oversees the union’s Stellantis division, to other UAW leaders said: “We have been meeting with the company over the past few months and last night we received a review of the reopening of the Dodge Durango and Belvidere. The grievances regarding the same have been resolved.”
“Thanks to your solidarity, Carlos Tavares was forced out as CEO of this company, and that made all the difference,” the letter, obtained by The Detroit News, added. “Since Antonio Filosa took over as COO of Stellantis North America, we have met with their team and the difference is clear. This is a leadership that is ready to recommit to investment.” ”
The letter said there is still work to be done to “repair the damage Carlos Tavares has caused,” including in relation to the thousands of union members laid off at the Stellantis plant in recent months. Ta.
Malick Masters, professor emeritus of business at Wayne State University, said Stellantis’ investment commitment is a “healthy development” for the UAW, which has spent the past six months fighting with Stellantis and pushing for Tavares’ ouster. said.
“It’s no surprise that Stellantis has undergone a number of changes under new leadership,” he said. “One of those areas was improving relations with other stakeholders, including unions and U.S. dealers.”
Filosa told Stellantis employees that the company’s chairman, Elkann, spoke with Trump last week and that the company’s “strong commitment to the U.S. auto industry and what this means for U.S. jobs and the economy in general” is important. He admitted that he shared “enthusiasm.”
The email continued, “John urges the President to build on our proud history of over 100 years in the United States and build on that tradition by further strengthening America’s manufacturing base and providing stability for America’s great workforce. I told them that I plan to continue.”
The union said in Kokomo that Stellantis is working to build “the second phase of the GME-T4 EVO engine starting in 2026,” and has pledged to reverse plans to move work out of this country. He said the plan does not preclude production of the same engine in Kokomo. Dundee Engine Plant in Michigan. Meanwhile, UAW officials said the company will increase parts production at its Toledo machining plant, which makes steering columns and torque converters.
Filosa added in the letter that the investment in the Toledo assembly complex will include “additional technology and strong product activity” for both the Jeep Wrangler SUV and Gladiator pickup produced at the plant. . Sales for both models in 2024 were down year-on-year, with the Gladiator down 24%, leading to temporary shift reductions and threats of indefinite layoffs at the factory.
But the company has so far avoided mass layoffs of more than 1,000 people at its Toledo plant as previously planned. That’s because Jeep was able to start selling the Gladiator again at a faster price, Jeep brand chief Bob Broderdorf said in a recent interview.
“We’re going to improve the Gladiator right away,” he said. “I have a plan that I’m trying to roll out, and I want to roll out a level of aggression with that car.”
lramseth@detroitnews.com
@lramseth
