Amid Layoff Talks, Stellantis Reveals $400M Investment in Michigan

It's part of the company’s "multi-energy strategy."

Transcript

Last month, Stellantis created headlines after comments suggesting it could lay off as many as 2,450 of the 3,700 union workers employed at a truck plant just outside of Detroit.

The automaker warned that these measures would hit the Stellantis Warren Truck Plant, a Michigan factory that has been producing an older version of the Tradesman pickup that’s been replaced with a redesign. The new models will be produced in a different plant in Sterling Heights, Mich.

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The announcement led to angry reactions from the UAW and while the conversation is still far from over, new developments are being added to the mix that forecast the company’s investment strategy.

Stellantis has just revealed that it will invest $406 million in three separate Michigan plants, in support of the company’s “multi-energy strategy.”

The majority of the money – more than $235 million – is earmarked for Sterling Heights, where Stellantis plans to house operations for the company’s first US-made full EV.

Reports add that the Warren Truck Assembly Plant will net nearly $100 million for retooling, with plans to add an electrified Jeep Wagoneer. The remaining dollars will go to the Dundee Engine Plant, reportedly for battery tray production and beam machining.

Will the investments help appease the union after a contentious few weeks? Perhaps. At the time the layoffs were suggested, UAW president Shawn Fain called on Stellantis to step up, saying “It’s time for Stellantis to invest in us.”

The AP called the automaker’s move “a step toward meeting some commitments that it agreed to” after a 6-week strike led to ratified contracts last fall.

According to the contact, which runs through 2028, the company pledged to invest $1.4 billion at Sterling Heights.

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