Stellantis has recommitted to building vehicles at its Detroit and Belvidere, Illinois plants, after reaching a deal with the United Auto Workers (UAW). The company will produce the next-generation Dodge Durango SUV in Detroit and build a new midsize pickup truck at the shuttered assembly plant in Belvidere. This move comes after months of dispute over investment commitments made by Stellantis in its 2023 labor contract.
The agreement resolves a long-simmering dispute between the UAW and Stellantis, with the union accusing the company of reneging on promises to reopen the Belvidere Assembly Plant and shift Durango production from Detroit to Canada. The UAW had filed grievances against the company, which led to the sudden departure of CEO Carlos Tavares.
However, under new leadership, Stellantis has taken steps to improve its relationships with labor unions and other stakeholders. The company’s chairman, John Elkann, met with President Trump last week to discuss his commitment to the US auto industry. Stellantis plans to strengthen its US manufacturing footprint and provide stability for its workforce.
The deal includes a renewed focus on reviving the US market, including patching up relationships with dealers, suppliers, and the UAW. The company will also invest in new technologies and product actions at its Toledo Assembly Complex, which produces Jeep Wrangler and Gladiator vehicles.
This development comes amid Trump’s threatened new tariffs on Mexico and Canada, partly in an effort to force companies to manufacture more goods domestically. However, Stellantis has avoided a previously planned mass layoff of over 1,000 people at the Toledo plant, with sales of Gladiator models showing signs of improvement.
Source: https://eu.detroitnews.com/story/business/autos/chrysler/2025/01/22/stellantis-says-it-will-build-durango-in-detroit-pickup-in-illinois/77876842007