Dive Brief:
- Stellantis has committed to reopening its shuttered Belvidere Assembly plant in Illinois to build an all-new mid-size pickup truck in 2027 and return approximately 1,500 union-represented jobs, the United Auto Workers announced in a press release Wednesday.
- Stellantis also announced plans to build the next generation Dodge Durango SUV at its Detroit Assembly Complex in Michigan, which was previously canceled, according to the UAW.
- In response to Stellantis’ updated plans, the UAW has agreed to settle its past grievances with the automaker concerning the closure of Belvidere Assembly, as well as grievances surrounding its decision to end production of the previous generation Durango after the 2024 model year.
Dive Insight:
The announcement to reopen the plant follows a meeting this week between Stellantis Chairman John Elkann and President Donald Trump to discuss the automaker’s “strong commitment to the U.S. auto industry,” according to a letter Elkann sent to employees that was shared with Automotive Dive.
The revised plans are part of a multi-billion dollar investment by Stellantis to increase its market share, grow sales volume and invest in innovative technology in the U.S., the letter states.
The Belvidere Assembly plant was idled as part of a series of cost-cutting moves by Stellantis. But in its contract negotiations with the UAW in late 2023, the automaker agreed to reopen the plant, only to reverse course and delay those plans.
In July, Stellantis was also awarded $335 million by the Department of Energy to convert the Belvidere facility for electric vehicle production. Those plans were also put on hold.
The UAW threatened a national strike against Stellantis last August for failing to keep its product and investment commitments, including keeping the Belvidere Assembly plant open.
In the letter to employees, Elkann also announced the company’s other plans. They include investments in additional technologies for Jeep Wrangler and Jeep Gladiator production at its Toledo Assembly Complex, as well as components critical to production at its Toledo Machining Plant. Stellanis also plans to invest in its Kokomo, Indiana facilities to produce the GMET4 EVO engine for future models.
The UAW applauded the decision, saying the planned investments will retain union jobs.
“This victory is a testament to the power of workers standing together and holding a billion-dollar corporation accountable,” said UAW President Shawn Fain in the release. “We’ve 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.”
Despite the past grievances between the UAW and Stellantis, the automaker’s recently appointed North American COO, Antonio Filosa, has expressed a desire to work with the UAW to build vehicles in the U.S., according to the release.
“These actions are part of our commitment to invest in our U.S. operations to grow our auto production and manufacturing here,” Filosa said in the letter to employees. “We have shared with the UAW all these actions and our desire to work together to strengthen our great company.”
Stellantis aims to regain its footing after a difficult 2024, resulting in shrinking market share and declining sales in the U.S., which led to the sudden resignation of former CEO Carlos Tavares on Dec. 1.
The automaker also announced a series of other leadership changes last month, including the return of RAM CEO, Timothy Kuniskis, after his retirement in May 2024.
