The United Auto Workers’ dispute with Stellantis has escalated, with the union lodging federal labor complaints regarding commitments at an Illinois factory and alleging that a portion of SUV production may be relocated overseas. The UAW’s filing with the National Labor Relations Board accuses Stellantis of unlawfully withholding information about the reopening of a vehicle assembly plant in Belvidere, Illinois, and the establishment of a parts distribution center and electric vehicle battery plant there. The UAW has mentioned the possibility of a strike.
Additionally, numerous UAW local unions have filed grievances claiming that Stellantis intends to transfer production of the Dodge Durango SUV from the Detroit plant, where it is presently manufactured, to a different facility outside the United States. Despite reaching a new contract last autumn after a six-week strike, during which the company committed to the Belvidere projects and Durango production, the UAW stated that Stellantis now appears to be reneging on these agreements.
UAW President Shawn Fain emphasized that the contract affords the union the right to strike if there are breaches of the contractual obligations to produce vehicles in the U.S. He asserted, “Now Stellantis wants to go back on the deal. We intend to enforce our contract and to make Stellantis keep the promise.”
Stellantis has refuted accusations of contract violations, stating that, like all automakers, it is carefully managing the introduction of new vehicles into the market to maintain competitiveness. The company asserted that it will disclose its plans to the UAW at an appropriate juncture.
There is apprehension among many union members that failure on Stellantis’ part to revive the Belvidere facility may lead to the neglect of other commitments outlined in the new United Auto Workers’ contract extending till April 2028. Concerns linger that the automaker could potentially shift production to lower-cost facilities in Mexico.
While Stellantis maintains its commitment to reopening Belvidere, as well as constructing a battery plant and parts warehouse there, it cites unfavorable market conditions as the reason for postponement. The company did not specify timelines for these alterations, with more than 2,700 jobs at stake.
Under the terms of the contract, Stellantis agreed to reopen Belvidere Assembly by 2027, with plans in place to manufacture around 100,000 electric and gas-powered midsize pickups annually. The establishment of the parts hub is scheduled for this year and the battery factory for 2028. In total, the company pledged $18.9 billion in U.S. investments throughout the duration of the contract, which expires in April 2028.
Stellantis also committed to producing gas and electric variants of the next generation of Durango at Detroit’s Jefferson North Assembly Plant beginning in 2026. The company emphasized that investment and job creation in North America hinge on plant performance, market conditions, and ongoing consumer demand that sustains profitable sales volumes, in accordance with the agreement with the UAW.
