Stellantis NV confirmed Tuesday that it will push off reopening the Belvidere Assembly Plant in Illinois while also claiming that the United Auto Workers "cannot legally strike" over the delays.
In that investment letter, included in the 2023 contract, Stellantis committed to invest in the Belvidere plant in several ways. It agreed to spend about $1.5 billion to retool the plant so it could build a new midsize truck there starting in 2027. It committed to launch a $100 million mega parts hub in 2024 as well, consolidating other regional parts distribution centers in the process. It agreed to start stamping operations in 2025 at the plant to support that parts hub. And it said it would launch a new joint-venture battery operation in 2028 at the complex.
But the letter, authored by a Stellantis executive and approved by a UAW vice president, does include language that appears to give Stellantis some flexibility with its investments at Belvidere and other plants.
It states: "The parties understand and agree that the global and North American economies and vehicle markets remain highly volatile and, as such, continue to be unpredictable. Further unpredictability with volumes and mix is anticipated with the introduction of EV product offerings within our vehicle lineup.
"Accordingly," the letter adds, "it is understood that the product investment and employment level numbers set forth above are subject to approval by the Stellantis Product Allocation committee and contingent on plant performance, changes in market conditions, and consumer demand continuing to generate sustainable and profitable volumes for all of the U.S. manufacturing facilities described above."
https://www.detroitnews.com/story/business/autos/chrysler/2024/08/20/stellantis-says-uaw-cannot-legally-strike-over-belvidere-reopening-delays/74871073007/
= new reply since forum marked as read
