On the stage of the Democratic National Convention in Chicago back in August 2024, the President of the United Auto Workers (UAW), Shawn Fain, put pressure on Stellantis, the parent company of American auto brands Chrysler, Dodge, Jeep and Ram Trucks.
On what is possibly one of the biggest platforms he could use, Fain called out Stellantis (STLA) for lagging in its commitment to restart the shuttered Belvedere Assembly plant, even after a $334 million U.S. Energy Department grant was awarded to the automaker.
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“But a year later, one company [Stellantis] wants to back on their commitments on our contract,” Fain said to a packed United Center.
“Let me be clear: Stellantis must keep the promises they made to America in our union contract. And the UAW will take whatever action necessary at Stellantis or any other corporation to stand up and hold corporate America accountable.”
With his speech, Fain sparked a months-long dispute between the Union and the automaker over the specific grievances written into its landmark contract in 2023, which went as far as litigation.
However, new developments under new leadership at Stellantis have brought both parties involved new life and hope.
Stellantis’s Belvidere, Ill. Assembly Plant, located 60 miles west of Chicago.
Stellantis
The UAW-Stellantis dispute ends in an agreement
According to a report by Automotive News, Stellantis will reopen its long-idled Belvedere, Illinois, assembly plant in 2027 and fulfill other grievances laid out in the 2023 contract between the automaker and the UAW autoworkers union.
In an internal company memo seen by AutoNews, Stellantis noted that its interim leader, Chairman John Elkann, met with President Trump ahead of the Inauguration to discuss the automakers’ domestic manufacturing plans.
The company says these plans are “focused on increasing market share and growing sales volume and entail a multibillion-dollar investment in our people, great products, and innovative technology” in the United States.
As part of those plans, the automaker confirmed that a new mid-size pickup truck will be produced at the Belvidere facility and built by 1,500 UAW-represented employees.
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In addition, the automaker is fulfilling another UAW grievance, as it said it will keep production of the Dodge Durango at the Detroit Assembly Complex when it is due for a redesign in 2026.
Additionally, Stellantis noted that it will make further investments at its Toledo, Ohio plant; the factory that produces the Jeep Wrangler off-roader and the Gladiator pickup, and its Kokomo, Indiana facilities for future powertrain production.
In a statement issued by the United Auto Workers, UAW President Shawn Fain noted that the agreement came “after meeting with the company for the last several months.”
“This victory is a testament to the power of workers standing together and holding a billion-dollar corporation accountable,” Fain said.
“[…]Since Antonio Filosa has taken over as North American COO at Stellantis, we have been meeting with their team, and the difference is clear. This is a leadership that is ready to recommit to investing in our membership, our communities, and in this company.”
Related: The UAW union is taking a step back from Stellantis dispute
The UAW endured threats, litigation from Stellantis before agreement
By October 2024, the union was ready to strike against the automaker, as three UAW locals representing Stellantis facilities in Rockford, Illinois, Denver, Colorado, and Los Angeles, California, made authorization votes to strike on grievances related to the Belvedere plant, and a reported move of Dodge Durango production overseas.
However, on Oct. 7, Stellantis announced that it filed eight additional lawsuits against the UAW and 23 local chapters on Oct. 4, just a day after it filed a suit against the UAW and UAW Local 230, which represents the Los Angeles Parts Distribution Center, on Oct. 3 in response to the Local taking a strike authorization vote.
The suit, which was filed in the U.S. District Court Central District of California, claims that the union “filed sham grievances designed to justify mid-contract strikes against Stellantis” that violates the no-strike clause in its bargaining agreement.
However, taking the side of the union were 56 members of the House of Representatives and 23 members of the Senate, including Senate Majority Leader Chuck Schumer (D-NY), who blasted Stellantis and its then CEO, Carlos Tavares, for failing to honor the commitments it made to the United Auto Workers as well as wasting $335 million in public money to reopen the plant.
“Stellantis’ reliance on taxpayer support, while planning layoffs and moving production outside of the United States, betrays the trust of American workers and taxpayers,” the letter said.
Related: Stellantis former CEO made huge mistake with popular Dodge car
Stellantis leaders say that new leadership is bringing new energy to automaker
Though Stellantis’s brands experienced a rough sales year in 2024, brand leaders within the automaker note that Carlos Tavares’s departure, a leader known for his staunch and uptight personality, has injected some new life into the company.
In a CNBC report, several former and current Stellantis executives and other U.S.-based employees described the former CEO as a selfish, brash leader who emphasized cost-cutting.
In addition to ignoring American customers’ tastes and desires, the group noted that Tavares treated Stellantis like a European company and expected U.S.-based Stellantis executives to log into long meetings during regular business hours in Europe (the middle of the night in Detroit) before working a full day on U.S. hours.
However, with Tavares’ departure comes new energy in the form of Stellantis Chairman John Elkann and Stellantis COO Antonio Filosa, and according to Jeep North American head Bob Broderdorf, said energy is a signal for positive change.
“The energy is high right now,” Broderdorf explained to Motor1. “The leadership that [Elkann and Filosa] have shown all of us, and the trust and opportunity to make changes is incredible. The words they used were ‘we trust you, we understand you know how to do this, you understand our audience, we’re going to give you the freedom to do that.’ And they’ve quickly allowed us to do that.”
Stellantis NV is traded under STLA on the New York Stock Exchange.
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