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Stellantis Counters UAW’s Strike Threat, Cites Market Challenges

COO Carlos Zarlenga Defends Stellantis' Commitment To The 2023 Agreement Amidst Union Criticism...

Stellantis has issued a response to United Auto Workers (UAW) President Shawn Fain following remarks made during a recent Facebook livestream. In an e-mail addressed to Fain, Stellantis North America COO Carlos Zarlenga outlined the company’s position, defending its compliance with the 2023 Collective Bargaining Agreement (CBA) and addressing the potential for a strike.

Zarlenga’s e-mail directly countered Fain’s claims that Stellantis has not upheld its commitments during ongoing negotiations. He reiterated that the company has honored the terms agreed upon in 2023, pointing to specific language in Letter 311 of the agreement to clarify how investments and product allocations are determined.

Letter 311: Market Conditions and Allocation Contingencies – 

2024 Jeep® Wagoneer Series III 4×4 rolling off the assembly line at Warren Truck. (Stellantis).

The email highlighted that Stellantis’ investments are not guaranteed but contingent on various factors, including market conditions, customer demand, and plant performance.

“The language in Letter 311 is clear. It states that the investments and allocations set forth in Letter 311 ‘are subject to approval by the Stellantis Product Allocation Committee and contingent upon plant performance, changes in market conditions, and customer demand continuing to generate sustainable and profitable volumes’ for the relevant facility,” the e-mail states.

He went on to explain that Fain’s characterization of these commitments as guarantees is inaccurate, stressing the need for flexibility in the current market environment.

Impact of Market Volatility and EV Transition –

2024 Jeep® Wrangler 4xe on the line at the Toledo Assembly Complex. (Stellantis).

Zarlenga also pointed out the volatility within the automotive industry as it transitions to electric vehicles (EVs). He referenced multiple automakers who have revised their investment and product timelines and industry-wide EV sales projections that have been lowered by 25% for 2024.

“The evidence of a dramatic transformation of the industry and its effects on the market is clear,” Zarlenga emphasized, underscoring the challenges automakers face in navigating this transition. He reiterated that Stellantis’ decision to delay allocations at the Belvidere plant was consistent with both market realities and the language in Letter 311.

Clarifying Dodge Durango Production –

2024 Dodge Durango production at the Jefferson North Assembly Plant in Detroit. (Stellantis).

In response to Fain’s assertions regarding the production of the next-generation Dodge Durango, Zarlenga made it clear that Stellantis has not yet made any official announcements about the vehicle’s allocation.

“Contrary to Fain’s narrative, the company has not made an announcement regarding the production allocation of the next-generation Dodge Durango,” the e-mail stated, refuting the claims made during the livestream.

Investment Commitments – 

Ram 1500 Production at the Sterling Heights Assembly Plant. (Stellantis).

Fain had also criticized Stellantis for allegedly fulfilling only 2% of its promised investments under the 2023 CBA. Zarlenga disputed this figure, highlighting significant investments Stellantis has already made in U.S. facilities.

“With those investments plus the recently announced +$400 million in Michigan, we have actually announced about 30% of the nearly $19 billion that is included in the 2023 agreement, not just 2% as Fain claims,” the e-mail clarified.

Commitment to Dialogue – 

2024 Jeep® Grand Cherokee L production at the Detroit Assembly Complex – Mack Facility. (Stellantis).

Despite the differences in interpretation, Zarlenga affirmed Stellantis’ commitment to working with the UAW to resolve any issues. He emphasized the company’s willingness to meet with Fain and other union leaders to discuss the situation.

“To be clear, Stellantis has abided, and will continue to abide, by the agreement the parties reached in 2023,” Zarlenga stated, adding that he and the company’s North American team remain available to engage in further discussions.

Robert S. Miller

Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only the Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.

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Sounds like a factory readiness issue. The new Durango is starting production in 2025 or 2026, and the Alfa is coming in 2027, the same year as the next Grand Cherokee. Windsor is already set up to build STLA Large vehicles (Charger), while Detroit may need some retooling?

Capacity-wise, the Alfa could likely be produced at either plant, since they are anticipating building only 20k a year once production ramps up in 2028.Screenshot_20240621_093006_Chrome.jpgScreenshot_20240618_082947_Chrome.jpgScreenshot_20240613_114306_Adobe Acrobat.jpg

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Stellantis Shifting Durango Production For Alfa Romeo SUV?​

Alfa Romeo EV SUV To Be Built At JNAP As Durango Moves To Windsor?​

View attachment 10043

Stellantis is making notable shifts in its production plans, with recent reports highlighting changes for both the Dodge Durango and a new Alfa Romeo electric SUV. While a leaked document from CocheSpias in May states the production of an all-electric Alfa Romeo E-segment SUV (codenamed A6U) at the Jefferson North Assembly Plant (JNAP), the Windsor Starhas reported that the next-generation Dodge Durango (codenamed D6U) will be moving to the Windsor Assembly Plant in Ontario.

Currently Durango may be older yet sells about the same as GM's hyped Blazer which is amazing. Makes me wonder how long current Durango could keep going? Dodge buyers don't seem enamoured by new platforms or care about how long it's been since latest refresh. Durango is a classic design borrowed from Magnum. Hoping Stellantis maintains the basics and simply evolves the concept.

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Well that fancy quad exhaust definitely means the Alfa Romeo SUV wouldn't be an EV, that's for sure. The more I think of it though, If the other Stellantis brands had a larger presence over here, would it be enough to balance out the carbon footprint for them to continue producing our beloved Mopar brands in a way that would please the current customer base (with hurricane engines, not v8s). Take Fiat, Alfa Romeo and Maserati for instance, Fiat and Alfa are known for small engines and things like that. Use them in the North American Market to do battle with the Japanese and Korea vehicles and the onslaught of the electric market. I see no reason why a good 85% of those vehicles can't be put on the STLA Medium platform with hybrid powertrains with Hurricane-4 engines up front with the E-DCT gearbox driving the from wheels and a powerful STLA Medium EDM powering the rear wheels, taking on cars like the Civic Type R, Integra Type S, TLX Type S, MDX Type S, Elantra N, Toyota's entire GR lineup and sold as Fiat Abarth cars. Do the same with Alfa Romeo & Maserati and make some Quadrifoglio & Trofeo vehicles to battle it out with the 4-series and smaller BMW M cars and some of the AMG Mercedes vehicles. All of it would be electrified because they would have the EDMs in the back and the hybrid E-DCT gearboxes up front but they'd also have the 2.0L Hurricane-4 Turbo as well. Let those cars flood the market and displace Toyota, Honda and Nissan, let the Chrysler brand do all of the full BEV models, let Jeep be an off road brand again, Ram will always be Ram and let Dodge rule the roads again with Hurricane-6 powertrains with massive amounts of horsepower and torque! Maybe even bring back the cubic inch displacement of the Australian Hemi-6 engines in 3.5L, 4.0L & 4.3L with Hurricane twin turbo technology and performance and a hybrid 8-speed Gen-4. Let the Mopar brands be exclusively run on the STLA Large and STLA frame platforms. Heck, let Chrysler be all electric and come out with decent cars, we may even see the end of Tesla, which would be amazing!

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To be successful a global automobile company has to be global. Alfa Romeo is losing its pure Italian status just as Jeep is losing its pure American status. What will remain for any Stellantis brand is unique styling imagery that will be based around historic design elements that could be done in the native countries but built elsewhere in the most cost effective way, with each site replicating the manufacturing system and process. You will have multiple brands sharing the same factory and only one brand would be domestic, maybe none. You could have Jeeps, Fiats, Peugeot’s and Alfa Romeos all built in the same factory, sharing a common architecture that focuses on a market that targets the same customer base generally, but a different brand identity to match the.targeted market. A kind of slight of hand to maximize build quality and profits. Look for your next Jeep to be built in Poland sitting next to one built in Toledo Ohio that all have the iconic Jeep seven slot grill and the buyer sees a Jeep in both, superficially an “.All-American” Icon that few will dig any deeper into its origin. Now you see it, now you don’t ! It’s magic!! Welcome to the 21st century folks.

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Well that fancy quad exhaust definitely means the Alfa Romeo SUV wouldn't be an EV, that's for sure. The more I think of it though, If the other Stellantis brands had a larger presence over here, would it be enough to balance out the carbon footprint for them to continue producing our beloved Mopar brands in a way that would please the current customer base (with hurricane engines, not v8s). Take Fiat, Alfa Romeo and Maserati for instance, Fiat and Alfa are known for small engines and things like that. Use them in the North American Market to do battle with the Japanese and Korea vehicles and the onslaught of the electric market. I see no reason why a good 85% of those vehicles can't be put on the STLA Medium platform with hybrid powertrains with Hurricane-4 engines up front with the E-DCT gearbox driving the from wheels and a powerful STLA Medium EDM powering the rear wheels, taking on cars like the Civic Type R, Integra Type S, TLX Type S, MDX Type S, Elantra N, Toyota's entire GR lineup and sold as Fiat Abarth cars. Do the same with Alfa Romeo & Maserati and make some Quadrifoglio & Trofeo vehicles to battle it out with the 4-series and smaller BMW M cars and some of the AMG Mercedes vehicles. All of it would be electrified because they would have the EDMs in the back and the hybrid E-DCT gearboxes up front but they'd also have the 2.0L Hurricane-4 Turbo as well. Let those cars flood the market and displace Toyota, Honda and Nissan, let the Chrysler brand do all of the full BEV models, let Jeep be an off road brand again, Ram will always be Ram and let Dodge rule the roads again with Hurricane-6 powertrains with massive amounts of horsepower and torque! Maybe even bring back the cubic inch displacement of the Australian Hemi-6 engines in 3.5L, 4.0L & 4.3L with Hurricane twin turbo technology and performance and a hybrid 8-speed Gen-4. Let the Mopar brands be exclusively run on the STLA Large and STLA frame platforms. Heck, let Chrysler be all electric and come out with decent cars, we may even see the end of Tesla, which would be amazing!

Of all the traditional domestic Mopar brands, Chrysler might be the only one that could be successful as an all electric marquee. Chrysler, let’s face it, is essentially gone, but the image of Chrysler’s past still endures. Why not be a direct Tesla competitor, why not reinvent itself that way since little else is left besides its image to clutter up the brands portfolio and its defined market target on the showroom floor. It’s smart and really intelligent for all the other brands to make room in its brand composition, essentially and necessarily an ICE dominated brand for an electric model. But Chrysler, the new Chrysler, can be redefined and really, really, go after Tesla. That how I would approach it.

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