Stellantis will build vehicles at plants in Detroit, Illinois, chief says

Stellantis NV recommitted Wednesday to producing a new mid-size pickup truck at its shuttered Belvidere, Ill., assembly plant and building the next-generation Dodge Durango SUV in Detroit, resolving a long-standing dispute with the United Auto Workers union on their assembly sites. products.

The announcement comes days after Stellantis Chairman John Elkann met with President Donald Trump and said the automaker plans to strengthen its U.S. manufacturing footprint and ensure “stability” in its workforce. of American work, according to an e-mail sent by the North American leader of Stellantis, Antonio Filosa, to employees. .

For months, the union has accused the automaker of reneging on investment commitments it made in its 2023 labor contract. These included delays in reopening the Belvidere assembly plant and plans to move future production of the Durango from the Detroit-Jefferson assembly complex to Canada, although the company has never confirmed plans to move the SUV’s home.

The UAW filed complaints against the company starting last summer over investment disputes and repeatedly threatened strike action, while the company responded with lawsuits and other measures . The union withdrew those grievances late last year, but officials said they were prepared to revive them and hold strike authorization votes, if necessary, in the coming weeks.

Now, the UAW confirmed Wednesday, those grievances have been resolved. The resolution comes notably after the departure of CEO Carlos Tavares, who had bitter relations with the union, as well as the inauguration this week of Trump, who threatens to impose tariffs on goods from Mexico and Canada and puts pressure on companies like Stellantis to outsource more of their production. in the United States.

Filosa said in Wednesday’s memo to employees that Stellantis had recommitted to building the unnamed midsize pickup in Belvidere by 2027, after previously saying those production plans would be delayed. This will require approximately 1,500 UAW workers to return to the site.

The company is still evaluating plans for a parts mega-center at the plant, which was originally scheduled to open last year under the contract, spokeswoman Jodi Tinson said.

The email added that the next-generation Durango would still be manufactured at its current Detroit location – a reversal after the union said the company intended to move the large SUV to Windsor. The Jefferson plant, located east of Detroit, employs about 4,100 people and also makes the Jeep Grand Cherokee. Last year, the company faced several rounds of layoffs and production shutdowns due to slowing sales and inventory issues.

Late last year, local union officials in Jefferson were convinced the Durango wouldn’t go away after receiving assurances from the automaker. But Stellantis and the UAW had not officially announced anything until now. It’s unclear when production of a next-generation Durango will begin, but the union contract calls for 2026.

Stellantis said it will also invest in two northwest Ohio facilities, the Toledo Assembly Complex and Toledo Machining Plant, as well as its Kokomo, Ind., facility. who manufacture the GMET4 EVO four-cylinder engine. The union said the commitment to a second phase of engine production in Kokomo ran counter to the company’s previous plans to move that work out of the country.

“This victory is a testament to the power of working people united and holding a billion-dollar corporation accountable,” UAW President Shawn Fain 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 places like Belvidere, Detroit, Kokomo and beyond. »

Filosa wrote that the company would “expand our automotive production and manufacturing here” in the United States. It’s a different approach than the one the company took for much of last year under Tavares, as it reduced its U.S. blue-collar workforce.

Stellantis has had a tough 2024 with sharply declining sales and profits, and Filosa told reporters at the recent Detroit Auto Show that a key part of the transatlantic company’s turnaround would be a focus on new on the revival of the American market, in particular by reestablishing relations with dealers. suppliers, the union and others.

Wednesday’s investment announcement comes as Trump threatens new tariffs on Mexico and Canada, partly in an effort to force companies to manufacture more goods domestically.

The automaker has long maintained a significant industrial presence in the two neighboring countries, and the UAW has repeatedly expressed concerns in recent months that Stellantis, under Tavares’ leadership, plans to shift its footprint even further into outside the United States.

But then Trump was elected and Tavares suddenly left the company late last year. UAW officials said relations between the parties had improved in recent weeks, with Fain and Filosa having productive conversations. “After meeting with the company over the past several months, last night we resolved our grievances regarding the Dodge Durango and the reopening of Belvidere,” says a letter from Fain and Kevin Gotinsky, who oversees the union’s Stellantis department, to d other UAW leaders.

“Your solidarity forced Carlos Tavares from his position as CEO of this company, and it was a game-changer,” the letter obtained by The Detroit News added. “Since Antonio Filosa took over as North American COO at Stellantis, we have met with their team and the difference is clear. This is a leadership that is ready to recommit to investing in our members, our communities and in this business. “.

The letter states that there is still work to be done to “repair the damage caused by Carlos Tavares”, particularly with regard to the thousands of trade unionists who have been fired at Stellantis factories in recent months.

Marick Masters, professor emeritus of business at Wayne State University, said Stellantis’ investment commitments are a “healthy development” for the UAW after fighting with the company and pushing for Tavares’ ouster over the of the last six months.

“It does not surprise me that, under new management, Stellantis has undertaken a number of changes,” he said. “One area was to improve its relationships with unions and other stakeholders, including dealers in the United States.”

Filosa confirmed to Stellantis employees that the company’s president, Elkann, met with Trump last week, sharing the company’s “enthusiasm for its strong commitment to the U.S. auto industry and all that it means to American jobs and the economy in general,” Filosa wrote. .

“John told the President that, with our proud 100-plus year history in the United States, we plan to continue that legacy by further strengthening our U.S. manufacturing footprint and ensuring the stability of our formidable workforce. “American work,” he said.

The union said at Kokomo that Stellantis was committed to building “phase II of the GME-T4 EVO engine starting in 2026, canceling plans to move work out of this country”, and that this plan does not would not interfere with the production of the same engine worldwide. Dundee, Michigan Engine Plant. At the same time, UAW officials said the company would increase production of components at the Toledo machining plant, which makes steering columns and torque converters.

Filosa, in his letter, added that investments in the Toledo assembly complex would include “additional technologies and strong product actions” for the Jeep Wrangler SUV and Gladiator pickup built at the plant. Sales of both models fell year-on-year in 2024, with the Gladiator down 24%, leading to temporary shift reductions at the factory and the threat of indefinite layoffs.

However, so far the company has avoided a mass layoff of more than 1,000 people at the Toledo plant. That’s because Jeep was able to start selling Gladiators again more quickly, Bob Broderdorf, head of the Jeep brand, said in a recent interview.

“We’re going to get better at Gladiator very soon,” he said. “I have a plan that we are looking to implement, a level of aggression that I want to deploy with this car.”

lramseth@detroitnews.com

@lramseth