White House Urges Stellantis To Fulfill UAW Commitments

On Wednesday, the White House emphasized the importance of Stellantis fulfilling its commitments to the United Auto Workers (UAW) union and the communities impacted by previous plant closures in the United States. This statement follows concerns that the automaker has not met the investment and production commitments made during a contract agreement reached in 2023.

White House Press Secretary Karine Jean-Pierre stated, “The deal reached in 2023 between the UAW and Stellantis included a commitment to reopen and expand production in communities devastated by previous plant closures. What we want to see is Stellantis certainly deliver on those commitments to the UAW and to the communities.”

The UAW has voiced frustrations over Stellantis’ alleged failure to uphold its end of the agreement, asserting that local chapters could initiate multiple strikes. This comes after the union conducted a six-week strike last year, resulting in a deal that included significant investment commitments from Stellantis.

As part of the 2023 contract, Stellantis pledged to invest $1.5 billion to reopen its Belvidere Assembly Plant in Illinois and produce a new electrified midsize pickup in 2027. The investment also includes a new battery plant to support the pickup’s production and a Mopar Parts Distribution Mega Hub. This investment is part of a broader $19 billion plan to enhance production capabilities and job creation in the U.S.

Despite this commitment, Stellantis acknowledged in August that some investments had been delayed due to economic conditions. However, the company reaffirmed its dedication to investing in the U.S. market. “We remain committed to investing in the U.S. to create jobs and support its communities,” a company spokesperson reiterated.

Stellantis’ recent legal actions compound the UAW’s concerns. The automaker has filed 11 lawsuits against the union and its local chapters, claiming contract violations due to threats of strikes over the company’s investment delays.

In a related matter, Jean-Pierre refrained from addressing a report that Stellantis might shift some Ram 1500 (DT) pickup production to Mexico. Currently, the fifth-generation Ram 1500 trucks are manufactured in Sterling Heights, Michigan, while the Ram 2500, 3500, 4500, and 5500 Heavy-Duty models are produced in Saltillo, Mexico.

Stellantis did announce a recent $235 million investment in its Sterling Heights Assembly Plant (SHAP) in Michigan, aimed at supporting its new electrified Ram 1500 REV and Ramcharger pickups. The company emphasized that it intends to comply with the 2023 collective bargaining agreement during its transition to electrification.

Former President Donald Trump, the Republican nominee for the upcoming election, has publicly stated that if elected, he would impose 100% or more tariffs on all imported Mexican vehicles. This highlights that both sides of the political aisle are trying to keep American automotive manufacturing in the U.S.

Source: Reuters