By David Shepardson and Nora Eckert
WASHINGTON/DETROIT (Reuters) – Chrysler dad or mum Stellantis (NYSE:) is shifting ahead with plans to construct a brand new midsize pickup truck in Belvidere, Illinois, the corporate stated on Wednesday, ending months of battle with the United Auto Staff union over delays, and strengthening its U.S. manufacturing footprint as President Donald Trump takes workplace.
Stellantis in 2023 agreed to construct a brand new $3.2 billion battery plant and make investments $1.5 billion in Belvidere to construct new midsize vans by 2027, however delayed the plans in August. The Italian-American automaker informed staff that it will stick to these funding plans on Wednesday in a memo seen by Reuters.
Stellantis Chair John Elkann met with Trump final week and touted the corporate’s U.S. technique.
Automakers are beneath rising stress to onshore manufacturing after Trump stated he was contemplating imposing 25% duties on imports from Canada and Mexico on Feb. 1.
Stellantis, in addition to its Detroit rivals Common Motors (NYSE:) and Ford Motor (NYSE:), would take a success from such tariffs due to their manufacturing footprint outdoors of the U.S., particularly in Mexico.
The Belvidere manufacturing facility has been a battleground for the United Auto Staff union since its six-week strike in opposition to Detroit’s automakers in late 2023.
In September 2024, the union filed unfair labor follow costs in opposition to the automaker, partly as a result of it stated Stellantis was delaying deliberate investments into a brand new battery plant and manufacturing facility in Belvidere.
“This victory is a testomony to the ability of employees standing collectively and holding a billion-dollar company accountable,” UAW President Shawn Fain stated in an announcement.
A Stellantis spokesperson stated on Wednesday the brand new midsize truck is “deliberate to take full benefit of our multi-energy technique,” together with choices for a gasoline-powered automobile, plug-in hybrid and electrical automobile.
The automaker stated it additionally plans to funnel extra investments into its Toledo, Ohio, meeting facility, the place it makes the Jeep Wrangler and Gladiator, together with extra investments in its Kokomo, Indiana, engine plant.
The announcement exhibits the corporate is attempting to be extra versatile in an effort to reply to fluctuating EV demand, stated Sam Fiorani, vp at analysis agency AutoForecast Options.
“Funding in new powertrains and the unspecified energy system for the brand new pickup in Belvidere present that Stellantis is making ready for a much less EV-focused future and planning to climate the subsequent 10 years with a spread of drivetrains from absolutely gas-powered to completely electrical,” he stated.
Manufacturing of the Dodge Durango has additionally been a sticking level between the union and firm, with the union beforehand claiming Stellantis deliberate to offshore manufacturing of the three-row SUV.
Stellantis is shifting ahead with plans to construct the next-generation Dodge Durango at its meeting complicated in Detroit, the corporate stated within the memo.