To Ruth Breeden, who works on assembling Ram trucks in Sterling Heights, Michigan, the ongoing dispute between the United Auto Workers and Stellantis goes beyond the reopening of a factory in Belvidere, Illinois. The unresolved situation serves as a warning sign for all UAW workers. Stellantis had previously agreed to reopen the Belvidere plant under a contract established last year with the union. However, the reopening has been postponed due to what the company refers to as unfavorable “market conditions.”
Although Stellantis has expressed intentions to eventually reopen the facility, no specific date has been provided for its restart or for the opening of a new battery plant and parts warehouse, as stipulated in the contract that concluded the UAW’s strike against Stellantis last year. Over 2,700 jobs are at stake in this situation. Breeden and her fellow union members are concerned that Stellantis may fail to uphold its other commitments, potentially putting their jobs in jeopardy.
The union leaders have raised the possibility of a strike, a move that could have repercussions beyond just Stellantis. Industry experts suggest that competitors, such as Ford and General Motors, are closely monitoring the situation as they contemplate their strategies, including the potential relocation of future production outside the U.S.
Following strikes against all three Detroit automakers last year, new contracts were signed with the UAW. Stellantis agreed to reopen the Belvidere Assembly plant by 2027 with plans to manufacture electric and gas-powered midsize pickups. These plans also encompassed the establishment of a parts hub in Belvidere this year and an electric vehicle battery factory with 1,300 employees by 2028. In total, Stellantis pledged $18.9 billion in U.S. investments in the agreement, valid until April 2028.
Stellantis recently announced plans to allocate approximately $400 million to upgrade three Michigan factories for the manufacturing of electric vehicles or their components. However, there remains apprehension among workers like Breeden regarding potential shifts in production to lower-wage countries like Mexico, where Stellantis already produces Ram pickups.
Despite challenges faced by Stellantis in the current economic climate, the company maintains its commitment to the Belvidere plant, citing the need for the delay to ensure competitiveness and preserve jobs in U.S. factories. The language in the contract emphasizes that investment and job retention in North America are contingent on plant performance, market conditions, and sustained demand from consumers.