Automaker Stellantis plans to reopen its Belvidere, Illinois, assembly plant and expand production in Detroit, Michigan, rather than Canada, after its chairman met with President Donald Trump just before the inauguration on Monday.
Manufacturer is produce The next-generation Dodge Durango SUV in Detroit and a “new mid-size pickup truck” from the Belvidere Jeep plant, which closed in February 2023, The Detroit News reported Wednesday.
Belvidere location employed Approximately 5,000 In 2019, three shifts of workers were produced, and about 190,000 Jeep Cherokees were produced that year, but sales have since declined and two shifts have been cut by 2022. new york times Reported. Around 1,350 people lost their jobs when Netherlands-based Stellantis announced the “indefinite” closure of its factories.
According to the Detroit News, the positive news from the company comes after a “long-simmering dispute” with the United Auto Workers (UAW) over plans to move vehicle assembly sites, particularly production of some vehicles, to Ontario. It was announced after.
The multinational company, which produces several other brands including Chrysler and Ram, is suffering from an alarming trend of production cuts. mass layoffs Percentage of American employees who are in favor of hiring low wage workers overseas, and commit billions of Despite this, manufacturing electric vehicles (EVs) consumer data Breitbart News reported that the results show that U.S. drivers continue to use gasoline.
One of the UAW's biggest complaints was the company's previous plan to produce its next Durango SUV, expected by 2026, in Windsor, Ontario, rather than Detroit.
In addition to the Durango work in Detroit, about 15,000 UAW employees will return to the Belvidere factory by 2027, according to a letter from North American Chief Operating Officer Antonio Filosa to employees. The company plans to produce an unnamed medium-sized pickup truck. .
The UAW later announced that it confirmed the complaint with Stellantis had been resolved. Website.
Former Stellantis CEO Carlos Tavares resigned in December, shortly after Trump's victory, due to bad relations with unions.
According to multiple publications, Tavares was trying to push the company into EVs despite low sales.
“According to multiple sources, executives have repeatedly tried to focus on electric vehicles to maintain sales, or at least launch gasoline-powered vehicles before EV models, but Mr. Tavares said that “He denied any such behavior,” CNBC said. reported Immediately after the former CEO resigned.
The CNBC article is corroborated EuroNews reported that “Tavares supported Stellantis' €50 billion electrification investment, aiming for 100% battery electric vehicle (BEV) sales in Europe by 2030.”
“However, sales were lower than expected,” the France-based retailer said in the same week. “According to Bank of America's latest EV tracker, Stellantis sold 173.4 thousand BEVs in the first half of 2023, but this figure will decline to 157.7 thousand in the first half of 2024, a 9% year-on-year increase. decreased.
Since then, Stellantis has been led by an interim executive committee. by chairman John Elkannaccording to NPR.
Filosa said in the letter that Elkann met with Trump last week and that the company is “enthusiastic about the president's strong commitment to the U.S. auto industry and all this means for American jobs and the overall economy.” He admitted that he had told him.
“John told the President that we plan to build on our proud history of more than 100 years in the United States and continue that tradition by further strengthening America's manufacturing base and providing stability for America's great workforce. “There is,” the COO wrote of the chairman. Conversation with Mr. Trump.
The letter also included good news for workers at two facilities in Stellantis, Ohio (Toledo Assembly Complex and Toledo Machining Plant) and Kokomo, Indiana, announcing investments in all three locations. .
“The union said the commitment to a second phase of engine production in Kokomo reversed the company's previous plans to move that work overseas,” the Detroit News reported.
Filosa added in the letter that Stellantis is committed to “growing automotive production and manufacturing here” in the United States.
“This victory is a testament to the power of workers to come together and hold a billion-dollar corporation accountable. We thank the thousands of members and leaders who rallied, marched, filed complaints, and spoke with their colleagues. Thank you,” said UAW President Sean Fein. statement. “Thanks to everyone's solidarity, Carlos Tavares was forced out as CEO of this company, which changed the game forever. Since Antonio Filosa became Stellantis' North American COO, we have met with their team. But the difference was clear: This is a leadership that is ready to recommit to our members, our community, and this company.”
The move to keep Durango manufactured in the United States began in response to President Trump's inauguration. threaten Shortly after taking office, CBS News reported that he planned to impose heavy tariffs on Mexico and Canada.
“We're thinking in terms of 25% for Mexico and Canada, because Mexico and Canada allow huge numbers of people into the country, and Canada is also a very bad abuser. Huge numbers. We are allowing thousands of people into our country and allowing fentanyl into our country,” President Trump said on Monday. He signed a series of executive orders.
According to the report, the tariffs could go into effect as early as February 1st.
Pierre Poièvre, leader of Canada's Conservative Party, called President Trump's threat an “emergency” and criticized the ruling Liberal Party for suspending Parliament until the end of March, when the election to replace Prime Minister Trudeau is over, according to Breitbart. News reported Wednesday.
