Detroit Warehouse Serving Stellantis to Close

A warehouse in Detroit’s east side that supplies auto parts to Stellantis is set to close, leaving 352 workers facing layoffs. Logistics Insight Corp., the company operating the Georgia Street facility, informed Michigan’s Department of Labor and Economic Opportunity about the decision in a required state filing last month. Layoffs are scheduled to begin on February 18, 2025.

The warehouse is affiliated with Moroun-owned Universal Logistics and has been a key part of Stellantis’ supply chain. However, reports indicate that Stellantis may be moving the work to a nonunion operator to reduce costs. This move has sparked concerns among union representatives, as the facility’s employees are represented by Teamsters Local 299.

According to the filing, the company will honor transfer rights under its collective bargaining agreement but stated that bumping rights—allowing senior employees to take over junior employees’ roles—are not part of the deal. The fate of the affected workers remains uncertain, with union leaders and Stellantis yet to release official statements.

This closure highlights ongoing challenges within the automotive supply chain as companies navigate rising costs and competitive pressures. The warehouse shutdown is another example of how the industry’s shifts can significantly impact local workers and their communities.

Source: Detroit Free Press