Stellantis released a statement that objects to the United Auto Workers’ claims that the automaker has not honored its commitments during negotiations. The company was responding to comments made by UAW President Shawn Fain during a video titled, “Stellantis Keep the Promise.”
Most Read on Manufacturing.net:
Fain’s video comes about a month after Stellantis informed the UAW that it would delay resuming operations at an idled plant in Belvidere, Illinois, a key piece in negotiations that ended the Big Three strike in 2023. Fain also said that the automaker plans to relocate production of the Dodge Durango from a Detroit assembly plant to Ontario, which the UAW president described as “a flagrant violation of our contract.”
As a result, the UAW initiated a grievance processes that could lead to a strike across multiple Stellantis facilities.
Stellantis’ response stated “After careful review and analysis, Stellantis stands by its position that it has honored its commitments under the 2023 collective bargaining agreement.”
The automaker defended their argument by adding:
- 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 investments and timelines are not absolute guarantees, as Fain has wrongly and repeatedly characterized, but contingent upon numerous factors, including market conditions.
- There is indisputable volatility in the market, especially as the industry transitions to an electrified future. Many automakers are revising their plans. Over the last year, there have been numerous announcements of investment and product delays as well as outright product cancelations across the industry, leading one respected automotive consulting company to revise its ‘24 EV sales projections down 25% (note: 9% from 12%). The evidence of a dramatic transformation of the industry and its effects on the market is clear.
- The decision to delay the timeline for the Belvidere plant allocations is consistent with the current challenging automotive landscape and the plain language of Letter 311.
- Contrary to Fain’s narrative, the company has not made an announcement regarding the production allocation of the next generation Dodge Durango.
- Stellantis has announced investments of $6.2 billion in Kokomo, in 2022 and 2023, respectively. 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.
Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.