- Stellantis is refuting claims made by the UAW and its president, Shawn Fain.
- The automaker said investments and timelines in the UAW agreement were “not absolute guarantees.”
- It also pointed out they haven’t said where the next Dodge Durango will be built, despite rumors suggesting it will be made in Canada instead of Detroit.
The war of words between Stellantis and the UAW is heating up as the automaker has decided to set the “record straight.” As part of this effort, Stellantis North America COO Carlos Zarlenga sent UAW President Shawn Fain an e-mail, while the automaker posted what is essentially an open letter refuting him and the union.
While there are multiple issues between the two sides, the primary focus is on Stellantis not honoring production commitments made in the UAW agreement. Belvidere Assembly is front and center as the union has previously said the automaker will “not launch the Belvidere Consolidated Mopar Mega Hub in 2024, … not begin stamping operations for the Belvidere Mega Hub in 2025, and … not begin production of a midsize truck in Belvidere in 2027.”
More: UAW Threatens Fresh Stellantis Strikes Over Failure To Honor Product Commitments
That pushed them to lay the groundwork for a strike, and Stellantis confirmed there would be a delay to preserve their “competitiveness and sustainability.” At the time, the automaker said they had “not violated the commitments” to the UAW and the union “agreed to language that expressly allows the company to modify product investments and employment levels.”
Stellantis hammered home the latter point in their open letter as they said “investments and allocations set forth in Letter 311 ‘are subject to approval by the Stellantis product Allocation Committee and contingent upon plant performance, changes in market conditions, and customer demand continuing to generate sustainable and profitable volumes’ for the relevant facility.”
The company went on to say these “investments and timelines are not absolute guarantees,” despite Fain “wrongly and repeatedly” suggesting they were.
The company also pointed to “indisputable volatility in the market, especially as the industry transitions to an electrified future.” As they correctly pointed out, many companies are walking back their electrification plans and pushing back goals to go electric-only.
Next Dodge Durango production site still undecided
Besides talking about Belvidere Assembly, Stellantis said they haven’t made an announcement regarding the production allocation of the next-generation Dodge Durango. The agreement with the UAW called for it to be built in Detroit starting in 2026, although recent reports have suggested it could be made at Windsor Assembly, alongside the Charger and Charger Daytona.
Stellantis then pointed to billions in investments and said “we have actually announced about 30% of the nearly $19 billion that is included in the 2023 agreement, not just 2% as Fain claims.” The company added it “has abided, and will continue to abide, by the agreement the parties reached in 2023.”
Despite telling Fain off, the company said CEO Carlos Tavares and his North American team are ready to meet with the union and explain “how these actions are appropriate under the CBA [Collective Bargaining Agreement].” That’s effectively calling the union stupid and it puts the ball in Fain’s court.