The White House has called on Stellantis (STLAM.MI) to uphold its agreements with the United Auto Workers (UAW) and communities affected by plant closures in the United States. White House Press Secretary Karine Jean-Pierre stated on Wednesday that the 2023 agreement between the automaker and the UAW included commitments to reopen and expand production in areas devastated by previous plant closures.
“What we want to see is Stellantis certainly deliver on those commitments to the UAW and to the communities,” Jean-Pierre said.
The UAW has warned that multiple strikes could be launched by local chapters, accusing Stellantis of failing to meet the investment and product promises it made after the union conducted a six-week strike last year. As part of its 2023 contract, Stellantis had pledged to invest $1.5 billion to reopen its shuttered Belvidere, Illinois, assembly plant and begin production of new mid-size trucks by 2027. This investment is part of the automakerās broader $19 billion investment plans in the U.S.
Stellantis has acknowledged delays in some of its planned investments due to economic conditions but reiterated its commitment to investing in U.S. operations. “We remain committed to investing in the U.S. to create jobs and support its communities,” the company said on Wednesday.
The automaker has faced increased tensions with the UAW, filing 11 lawsuits in recent weeks against the union and its local units, alleging contract violations over threats to strike related to the delayed investments.
In response to reports suggesting Stellantis may move some Ram 1500 pickup production to Mexico, Jean-Pierre did not comment directly. The automaker currently produces Ram trucks in both Mexico and Michigan. Stellantis, however, recently announced a $235 million investment in its Sterling Heights Assembly Plant in Michigan to support continued Ram truck production. The company emphasized that it will continue to follow the 2023 collective bargaining agreement as it navigates the shift to electrification.
Source: Reuters
