WASHINGTON – Stellantis (NYSE: STLA), the Chrysler-parent, should make good on its commitments to the United Auto Workers union and to communities impacted by plant closures in the United States, the White House said Wednesday.
The deal reached in 2023 between the UAW and Stellantis “included a commitment to reopen and expand production in communities that were devastated by previous plant closures,” White House spokeswoman Karine Jean-Pierre said. “What we want to see is Stellantis certainly deliver on those commitments to the UAW and to the communities.”
The UAW says its local chapters could launch multiple strikes after asserting Stellantis has failed to keep the product and investment commitments it agreed to after the union conducted a six-week strike last year.
In 2023, Stellantis (NYSE: STLA) agreed within the UAW contract to invest $1.5 billion to reopen its shuttered Belvidere, Illinois, assembly plant and build new mid-size trucks by 2027 as part of $19 billion in overall investment plans.
The automaker first acknowledged in August delaying some investments because of economic conditions but reiterated on Wednesday that “it remains committed to investing in the U.S. to create jobs and support its communities.”
President Joe Biden traveled to Illinois in November 2023 to tout the agreement.
In recent weeks, Stellantis has filed 11 lawsuits against the UAW and local units, saying the union has violated its contract by threatening to strike over the company’s delays in planned investments.
Separately, Jean-Pierre didn’t respond directly to a question about a report that Stellantis plans to move some Ram 1500 pickup production to Mexico. Stellantis is currently making Ram pickup trucks in Mexico and Michigan.
Republican Donald Trump has vowed, if elected, to impose 100% tariffs or higher on all imported Mexican vehicles.
On Wednesday, Stellantis said it recently announced a $235 million investment in its Sterling Heights Assembly Plant in Michigan to support ongoing production of Ram trucks. The company added as it manages “the transition to electrification, it will continue to abide by the 2023 collective bargaining agreement.”
Stellantis added, “no other announcements have been made about the production of the Ram 1500.”
(Source: ReutersReuters)
