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Stellantis to resume work at Illinois plant in 2027 to resolve issues with UAW

Arun Jain, 23/01/2025

2025-01-23 01:22:00 :

Automaker Stellantis said Wednesday it plans to reopen an Illinois assembly plant and build the next-generation Dodge Durango in Detroit.

Antonio Filosa, North America chief operating officer, confirmed in an email to employees that a new midsize pickup truck will be built at the plant in Belvidere, about 70 miles northwest of Chicago. The move will bring approximately 1,500 UAW-represented employees back to work.

Stellantis will also move forward with plans to build the Durango midsize SUV at its Detroit assembly plant. In addition to Dodge and Chrysler vehicles, Stellantis also owns brands such as Ram and Jeep.

Other plans include additional investments in the Toledo, Ohio, plant and additional investment in the Kokomo, Indiana, plant to produce the GME-T4 EVO engine and keep its manufacturing operations in the United States.

UAW President Shawn Fain and UAW Stellantis Division Director Kevin Gotinsky said in a letter to union members that the Belvedere plant will reopen in 2027.

In September, the UAW filed a complaint with the National Labor Relations Board alleging that Stellantis illegally refused to release information about plans to move Durango production from Detroit to Canada.

The company also complained about delays in the reopening of the Durango plant, the Belvedere plant and the construction of a parts distribution center and an electric vehicle battery plant there. The UAW has threatened to address the issue.

The UAW previously said Stellantis had committed to increasing capacity at Belvidere and production at Durango in the union’s new contract, which was reached in 2023 after a six-week strike.

Stellantis denies it breached the contract and said in September that like all automakers it was managing how and when it brings new vehicles to market to remain competitive.

“This victory is a testament to the power of workers to come together and hold a multi-billion dollar company accountable,” the UAW letter said.

Fain and Gotinsky say they’ve seen noticeable changes since they started working with Filosa and his team. Stellantis CEO Carlos Tavares resigned last month.

“Leadership is ready to recommit to investing in our members, our communities and this company,” they said.

Filosa’s email also said Chairman John Elkann met with President Donald Trump to discuss the U.S. auto industry, jobs and the broader economy.

“John told the president that building on our proud history in America that spans more than 100 years, we plan to continue that legacy by further strengthening our U.S. manufacturing footprint and providing stability for our great American workforce,” the email said.

Fein and Gotinsky said union members must remain vigilant and stay organized.

“Throughout this process, we have all learned an important lesson: Keeping jobs in this country requires a fight. We have shown the company and the country that we are ready for this fight,” they said.

Catch all business news, corporate news, breaking news events and latest news updates on Live Mint. Download The Mint News app for daily market updates.

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