Stellantis will transfer ahead on plan to construct new | Inventory Information
By David Shepardson and Nora Eckert
WASHINGTON/DETROIT (Reuters) – Chrysler mum or dad Stellantis (NYSE:) is transferring ahead with plans to construct a new midsize pickup truck in Belvidere, Illinois, the company mentioned on Wednesday, ending months of battle with the United Auto Staff union over delays, and strengthening its U.S. manufacturing footprint as President Donald Trump takes workplace.
Stellantis in 2023 agreed to construct a new $3.2 billion battery plant and invest $1.5 billion in Belvidere to construct new midsize vehicles by 2027, however delayed the plans in August. The Italian-American automaker instructed workers that it will keep on with these investment plans on Wednesday in a memo seen by Reuters.
Stellantis Chair John Elkann met with Trump final week and touted the company’s U.S. strategy.
Automakers are below growing stress to onshore manufacturing after Trump mentioned he was contemplating imposing 25% duties on imports from Canada and Mexico on Feb. 1.
Stellantis, in addition to its Detroit rivals Common Motors (NYSE:) and Ford Motor (NYSE:), would take a hit from such tariffs as a result of of their manufacturing footprint outdoors of the U.S., particularly in Mexico.
The Belvidere manufacturing unit has been a battleground for the United Auto Staff union since its six-week strike in opposition to Detroit’s automakers in late 2023.
In September 2024, the union filed unfair labor apply costs in opposition to the automaker, partly as a result of it mentioned Stellantis was delaying deliberate investments into a new battery plant and manufacturing unit in Belvidere.
“This victory is a testament to the power of workers standing together and holding a billion-dollar corporation accountable,” UAW President Shawn Fain mentioned in a assertion.
A Stellantis spokesperson mentioned on Wednesday the new midsize truck is “planned to take full advantage of our multi-energy strategy,” together with choices for a gasoline-powered vehicle, plug-in hybrid and electric vehicle.
The automaker mentioned it additionally plans to funnel more investments into its Toledo, Ohio, meeting facility, the place it makes the Jeep Wrangler and Gladiator, together with further investments in its Kokomo, Indiana, engine plant.
The announcement exhibits the company is attempting to be more versatile as a way to reply to fluctuating EV demand, mentioned Sam Fiorani, vice president at analysis firm AutoForecast Options.
“Investment in new powertrains and the unspecified power system for the new pickup in Belvidere show that Stellantis is preparing for a less EV-focused future and planning to weather the next 10 years with a range of drivetrains from fully gas-powered to fully electric,” he mentioned.
Manufacturing of the Dodge Durango has additionally been a sticking level between the union and company, with the union beforehand claiming Stellantis deliberate to offshore manufacturing of the three-row SUV.
Stellantis is transferring ahead with plans to construct the next-generation Dodge Durango at its meeting advanced in Detroit, the company mentioned within the memo.
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