UAW Warns Dodge Durango Assembly May Leave U.S.
The United Automobile Workers(UAW) is presently beefing with Stellantis leadership and has yet to let up. On Monday, the union filed federal unfair labor practice charges with the National Labor Relations Board over claims that the automaker has refused to provide information regarding product commitments outlined in the 2023 collective bargaining agreement. The UAW is concerned that Stellantis will attempt to move Dodge Durango production out of the United States — which it says would also be a violation of the aforementioned union agreement.
Over a dozen local unions have filed formal grievances with the Labor Board on the grounds that Stellantis is attempting to back out of promises to reopen Belvidere Assembly, in addition to other complaints about how the manufacturer is not living up to investment commitments and promises about job retention.
“In our 2023 contract, we won major gains, including a commitment to reopen an idled assembly plant in Belvidere, Illinois, and to build the Dodge Durango in Detroit. We also won the right to strike over those commitments, if we have to,” stated UAW President Shawn Fain. “Now, Stellantis wants to go back on the deal. As a united UAW, we intend to enforce our contract, and to make Stellantis keep the promise.”
The union is claiming that the company is illegally refusing to share details about plans regarding product commitments it made during the UAW's 2023 “Stand Up Strike.” Illinois was supposed to see the Belvidere facility reactivated and the Dodge Durango was supposed to remain on the assembly lines of the Jefferson North Assembly Plant in Detroit, Michigan. However, the union is growing concerned that Belvidere will remain closed and that the Durango will be heading out of the country — likely to Mexico.
Assertions were made by the UAW that Stellantis had agreed to invest $1.5 billion into the Detroit Assembly Complex, with the Durango staying where it is until 2025. Afterward, the assumption was that those earlier investments would be used to retool the facility to play host to the next-generation gasoline and all-electric models.
As of now, all we know for certain is that the automaker pushed back its timeline to rejuvenate Belvidere into a truck plant. Assembly is now supposed to commence in 2027.
The manufacturer has likewise attempted to diffuse some of the tension by stating it has not violated the commitments made in the Investment Letter included in the 2023 UAW Collective Bargaining Agreement. It has, however, stated that its trying to manage the business in a “sustainable” manner right now and would make the union aware of any changes it has planned “at the appropriate time.” It likewise stated that it had not yet seen the documents filed with the National Labor Relations Board and therefore has not had time to review the complete list of charges made against it.
Union members seem generally displeased with Stellantis right now, with UAW President Shawn Fain criticizing leadership for failing to deliver on its multi-billion-dollar investment plan ending in 2028. But the deal was finalized late last year and the automaker is clearly concerned about electrification due to the slow take rate of all-electric vehicles. Nearly 2,500 employees may also be laid off at the Warren Truck facility in October as production of the Ram 1500 Classic winds down so it can be formally replaced by the 1500 Tradesman. However, the manufacturer said it expects the final figure to be lower than that initial estimate as the Jeep Wagoneer will stay in production for the foreseeable future.
“Stellantis is one of the most profitable auto companies on the planet, and makes its money off of the American market,” stated UAW Stellantis Department Director Kevin Gotinsky. “UAW members generate that profit and build the product that keeps this company running. We will take action if necessary to stop Stellantis from violating our contract and abandoning the American worker.”
To be frank, Stellantis doesn't appear to totally clear on what it wants to do with its American brands. Some transparency would likely go a long way with both the public and the union. But, if it doesn't even have a formal plan for itself at present, then there's not much for it to convey to anybody else.
[Images: Stellantis]
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Consumer advocate tracking industry trends and regulations. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied, he pivoted to writing about cars. Since then, he has become an ardent supporter of the right-to-repair movement, been interviewed about the automotive sector by national broadcasts, participated in a few amateur rallying events, and driven more rental cars than anyone ever should. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and learned to drive by twelve. A contrarian, Matt claims to prefer understeer and motorcycles.
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Good. I hope the UAW thinks about this the next time they want to demand the moon
Carlos Travares wants to cut costs by 1/3. I don't see Chrysler or Dodge surviving too much longer especially since they are being literally starved for product. The success of the new Charger could extend Dodge a few more years but a failure might be a quick end to Dodge. I could see Stellantis moving more manufacturing for Jeep and Ram to Mexico which I believe will eventually be the only surviving brands of the old Chrysler. As for the Durango if it continues it will not be for too many more years it is an outdated product that I doubt will be redesigned especially when Jeep has a comparable product. Stellantis needs to address the high dealer inventory level by giving better incentives and low interest rates to clear excessive inventory.